State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California law, the defense of concealment available to an insurer applies when the insured:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Concealment under California law (CIC Sections 330-339) is the neglect to communicate a fact known to the insured that is material to the risk. The concealment may be intentional or unintentional — negligent — and if the fact is material the insurer may rescind. The key point is that even an honest omission of a material fact can give the insurer a defense, because concealment does not require an intent to deceive.
Why the other options are wrong
- B) Concealment does not require an explicit written question; the duty covers material facts the insurer would reasonably want to know.
- C) An immaterial fact, even if mistaken, does not support rescission; materiality is the test under Section 334.
- D) An agent labeling a question 'optional' does not remove the insured's duty to disclose material facts.
Memory hook
Concealment = the silent lie. It counts whether you hid it on purpose or just forgot.