State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California Insurance Code Section 354, a representation made by an applicant may qualify an implied warranty, but it may NOT:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 354 states that a representation cannot qualify an express provision in a contract of insurance, but it may qualify an implied warranty. An express provision is a term actually written into the policy, so an applicant's statement outside the document cannot soften or redefine it. The rule protects the integrity of the written contract while allowing representations to clarify the implied duties the law reads into coverage.
Why the other options are wrong
- B) Representations are commonly made in writing on the application; Section 354 does not restrict their form.
- C) Insurers rely on representations in deciding whether to accept the risk; that reliance is the basis of their legal significance.
- D) Representations typically do relate to the risk being insured; the limitation in Section 354 is about qualifying express terms, not about subject matter.
Memory hook
Written words win. A representation can shade an implied warranty but cannot rewrite an express clause.