The correct answer is C. A & B are correct.
An insurance contract can be declared void if there is either innocent misrepresentation or fraudulent misrepresentation.
Innocent misrepresentation is when a party makes a false statement of fact that they believe to be true, but which turns out to be false. The other party relies on this false statement and enters into the contract. If the other party can prove that they would not have entered into the contract if they had known the truth, they can have the contract declared void.
Fraudulent misrepresentation is when a party makes a false statement of fact that they know to be false, and they intend to deceive the other party into entering into the contract. If the other party can prove that they were deceived by the fraudulent misrepresentation, they can have the contract declared void.
In both cases, the party who has been misled can also sue the other party for damages.
Here is a brief explanation of each option:
- Option A: Innocent misrepresentation. This is when a party makes a false statement of fact that they believe to be true, but which turns out to be false. The other party relies on this false statement and enters into the contract. If the other party can prove that they would not have entered into the contract if they had known the truth, they can have the contract declared void.
- Option B: Fraudulent misrepresentation. This is when a party makes a false statement of fact that they know to be false, and they intend to deceive the other party into entering into the contract. If the other party can prove that they were deceived by the fraudulent misrepresentation, they can have the contract declared void.
- Option C: A & B are correct. This is the correct answer.
- Option D: None of the above. This is the incorrect answer.