Multiple choice

What is 'Material Fact' in an insurance contract?

  1. The insured must either own a part or whole of the subject matter of insurance.

  2. The insurer will promise to indemnify the loss.

  3. The insurer is not liable for any uninsured causes or perils.

  4. The insured is not allowed to make any profit on the happening of an event.

  5. The information that goes to the root of the insurance contract.
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E Correct answer
Explanation

This is correct. The information that can influence the insurer in accepting or declining the risk or in fixing the conditions of insurance or rate of premium is called the material fact.

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