Insurance 101 – Chapter 8 – Volume 31 – Rescission – 7

Rescission – 7

Materiality, as California Insurance Code section 334 tells us, must be determined solely by the probable and reasonable influence which the admittedly undisclosed information would have had upon Imperial’s [the company] decision to issue the policy. This is a subjective test; the critical question is the effect truthful answers would have had on Imperial, not
on some ‘average reasonable’ insurer.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

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