Multiple choice

Material fact

  1. is the value of all material covered in a policy

  2. is not important for assessing the risk

  3. is important as it influences the decision of the underwriter

  4. is not important as it has no bearing on the decision of the underwriter
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A fact that would be important to a reasonable person in deciding whether to engage or not to engage in a particular transaction; an important fact as distinguished from some unimportant or trivial details.

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