Representation Flashcards
What is the rule if the person insured has no personal knowledge of fact?
When a person insured has no personal knowledge of a fact, he may nevertheless repeat information which he has upon the subject, and he believes to be true, with the explanation that he does so on the information of others; or he may submit the information, in its whole extent, to the insurer, and in neither case is he responsible for its truth, unless it proceeds from an agent of the insured, whose duty it is to give the information.
What is the rule if the representation is deemed false? What is its effect?
A representation is to be deemed false when the facts fail to correspond with its assertions or stipulation.
If a representation is false, whether affirmative or promissory, the injured party is entitled to rescind the contract from the time when the representation becomes false.
How is the materiality of representation determined?
The same as of a concealment, which is:
Materiality is to be determined not by the event, but solely by the probable and reasonable influence of the facts upon the party to whom the communication is due, in forming his estimate of the disadvantages of the proposed contract, or in making his inquiries.
What is the incontestability clause?
After a policy of life insurance made payable on the death of the insured shall have been in force during the lifetime of the insured for a period of two years from the date of its issue or of its last reinstatement, the insurer cannot prove that the policy is void ab initio or is rescindable by reason of the fraudulent concealment or misrepresentation of the insured or his agent.
