State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California Insurance Code Section 447, the violation of a material warranty or other material provision of a policy entitles the other party to:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 447 provides that the violation of a material warranty or other material provision of a policy, by either party, entitles the other to rescind. Rescission voids the contract as though it never existed. Because warranties are statements of fact or promises that must be literally true, a material breach gives the injured party the right to cancel the agreement entirely.
Why the other options are wrong
- B) Section 447 creates no remedy of doubled benefits; that is not a rescission remedy.
- C) Extending the policy period is not a statutory remedy for a warranty breach.
- D) Penalties are not provided by Section 447; the remedy is rescission of the contract.
Memory hook
Break a material warranty and the contract can be unwound like it never existed.