Hazardous occupation
Previous policies of the proposer
Health
None of the above
Answer is Right!
Answer is Wrong!
The correct answer is D. None of the above.
A material fact is a fact that would influence the decision of an insurer in whether to issue a policy or set the premium. All of the options listed are material facts.
- Hazardous occupation: An insurer will want to know if the insured has a hazardous occupation, as this could increase the risk of claims.
- Previous policies of the proposer: An insurer will want to know if the insured has had any previous insurance policies, as this could provide information about their claims history.
- Health: An insurer will want to know about the insured’s health, as this could affect their risk of claims.
It is important for insureds to disclose all material facts to their insurers, as failure to do so could invalidate their policy.