State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An applicant for disability insurance unintentionally fails to mention a prior hospitalization because she genuinely forgot about it. Under California Insurance Code Section 331, the insurer may:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC Section 331 states that concealment, whether intentional or unintentional, entitles the injured party to rescind the insurance. California does not require proof of intent to deceive — the mere failure to disclose a material fact can void the policy from its inception. A forgotten hospitalization is still concealment of a material fact. This strict rule is why applicants are advised to review every answer carefully before signing an application.
Why the other options are wrong
- B) Section 331 expressly covers unintentional concealment; the insurer need not prove that the applicant intended to deceive.
- C) Unintentional omissions are concealment under Section 331 when the undisclosed fact is material to the risk.
- D) The remedy for concealment under the statute is rescission, not a retroactive premium adjustment.
Memory hook
In California, 'I forgot' is no defense. Section 331 rescinds with or without intent.