State RegulationsFL specificDifficulty 2/5
An applicant knowingly states on a life insurance application that she has never been treated for a heart condition, although she is currently under a cardiologist's care. Under Florida law, this is
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Chapter 626, Florida Statutes, and DFS fraud-enforcement policy, knowingly making a false statement of material fact in an insurance application to obtain coverage is insurance fraud. The misstatement about active cardiac treatment is material to underwriting, so it can void the policy and expose the applicant to penalties, whatever the insurer might later discover on its own.
Why the other options are wrong
- A) The insurer's ability to investigate later does not legalize a knowing falsehood on the application.
- C) Knowing and material falsehoods are not innocent mistakes - fraud requires exactly that intent and materiality.
- D) Twisting concerns an agent's misrepresentation that induces replacement of an existing policy, not the applicant's own falsehood.
Memory hook
Knowingly false + material = fraud.