State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An applicant for life insurance does not volunteer a fact about a hobby that appears prominently in the insurer's own published underwriting guidelines. Under California Insurance Code Section 333, the applicant's silence regarding this fact is:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 333 lists matters a party is not bound to communicate, including those the other party knows and those the other party ought to know with ordinary care. If the insurer's own underwriting guidelines already reflect the hobby, the insurer is deemed to know it, so the applicant's silence is not actionable concealment. Concealment liability attaches to withholding material facts the other party genuinely does not know.
Why the other options are wrong
- B) Only concealment of material facts that the other party does not know supports rescission; silence about known matters is not concealment.
- C) Premium level does not determine the duty to disclose; the statutory exemption turns on what the other party knows.
- D) Nondisclosure of a known matter is not a crime; it falls squarely within the Section 333 exemptions.
Memory hook
You need not teach the insurer what it already knows. Section 333 spares disclosure of the known and the obvious.