State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California Insurance Code Section 334, a misrepresentation or concealment is material if:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Section 334 defines materiality by the effect the fact would have had on the insurer's decision-making: would it have influenced acceptance of the risk or the premium charged? The test is applied prospectively, based on what the insurer would have done, rather than on whether a loss resulted or whether the insured intended to deceive. Intent and causation are not part of the materiality standard, and written form is not required for a statement to be material.
Why the other options are wrong
- A) Intent to deceive is the standard for fraud, not for materiality under Section 334.
- B) Materiality is judged by influence on the underwriting decision, not by whether the fact caused the loss.
- C) Written form is irrelevant; oral statements can be material.
Memory hook
Material means it would have changed the insurer's mind.