State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An insurance agent asks an applicant whether, in the applicant's own opinion, the applicant's occupation will become more dangerous next year. Under California Insurance Code Section 339, the applicant:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 339 provides that neither party to an insurance contract is bound to communicate, even upon inquiry, information of his or her own judgment upon the matters in question. A prediction or personal opinion about future danger is a matter of judgment rather than a statement of fact, so the applicant cannot be compelled to give it. This contrasts with questions seeking facts, such as medical history, which must be answered truthfully.
Why the other options are wrong
- B) Section 339 protects personal judgment even against a direct inquiry; the 'even upon inquiry' language is explicit.
- C) The protection does not depend on which side the opinion favors; it protects the party's own judgment generally.
- D) Materiality is not the test here because Section 339 exempts judgmental matters regardless of their potential importance.
Memory hook
Judgment calls are protected - even when asked. Facts, however, must be told.