Practice question
An applicant knowingly omits a fact stipulated to be material and subject to disclosure. It would reasonably affect underwriting, but the later loss has a different cause. Does that different cause alone defeat materiality?
- No, materiality is not determined by the eventual event
- Yes, only the actual cause can matter
- Yes, every unrelated cause validates every omission
- Yes, underwriting influence is irrelevant
- Yes, only facts causing the exact loss require disclosure
Legal references
- https://lawphil.net/statutes/repacts/ra2013/ra_10607_2013.html — Insurance Code as amended by RA 10607, sections 26–35 and 48
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