State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California Insurance Code Section 358, a representation is deemed false when:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Section 358 states that a representation is false when the facts fail to correspond with its assertions or stipulations. This is an objective test: the representation is compared with the actual facts, regardless of the applicant's intent. A false and material representation gives the insurer a basis to rescind under Section 359. Intent becomes relevant for fraud penalties, but falsity under Section 358 is measured purely by whether the facts match the statement.
Why the other options are wrong
- A) The insurer's subjective doubt does not make a statement false; falsity is measured against the actual facts.
- B) Withdrawing an application is permitted before insurance is effected (Section 355) and does not make a prior statement false.
- D) Section 350 allows representations to be oral or written; the form does not affect falsity.
Memory hook
Facts vs. words: if they do not match, the representation is false. Intent is irrelevant to falsity.