State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 3/5
Under California Insurance Code Section 333, an insurer is NOT entitled to rescind for the insured's failure to disclose:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 333 relieves the insured from communicating matters the insurer already knows or is presumed to know, matters the insurer has waived disclosure of, matters that are not material and are excluded from coverage, and matters of personal judgment (Section 339). There is no duty to tell the insurer what it already knows. This exemption protects the insured from duplicating information already in the insurer's possession.
Why the other options are wrong
- B) A hazardous avocation is a material fact that increases the risk and must be disclosed; the insurer does not know it automatically.
- C) A fraudulent prior claim is a material fact affecting the insured's credibility and risk classification; nondisclosure is concealment.
- D) Facts specifically requested by the agent are exactly what must be disclosed; failing to do so supports rescission.
Memory hook
No duty to state the obvious — what the insurer knows, you need not tell. But hazards and fraud? Disclose or lose.