State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California Insurance Code Section 358, a representation is considered false when:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 358 provides that a representation is false if it fails to agree with the facts in a way that is material to the risk. The test is objective — does the statement match reality — not whether the applicant intended to deceive or believed the statement to be true. A representation made 'with belief' by the applicant is treated as the applicant's own assertion of the fact, so an honest but wrong answer can still be a false representation.
Why the other options are wrong
- B) Honest belief does not make a false statement true under Section 358; the statement is judged against the actual facts.
- C) Intent to mislead is relevant to fraud or fraudulent misrepresentation but is not required for a representation to be false.
- D) The insurer's failure to verify does not change whether the representation agrees with the facts.
Memory hook
358: facts do not care about beliefs. A false answer is false even if you meant well.