State RegulationsFL specificDifficulty 3/5
A life insurance applicant answers every question on the application truthfully but deliberately fails to mention a recent cancer diagnosis because the application does not specifically ask about it. 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, concealment is the deliberate withholding of a known material fact - distinct from misrepresentation, which is an affirmative false statement. A recent cancer diagnosis plainly matters to a life underwriter, so staying silent about it is concealment, which can render the policy voidable and jeopardize a later claim.
Why the other options are wrong
- A) An applicant's duty goes beyond answering questions asked: material facts must not be intentionally suppressed.
- C) Rebating concerns improper inducements offered in sales; no payment or gift is involved.
- D) Controlled business is writing insurance on the agent's own interests; an applicant's omission is unrelated.
Memory hook
A lie by silence is still concealment.