Under California law, an insurer may rescind a health or disability policy if the insured's misrepresentation in the application was:

Why A is correct

Under California Insurance Code Sections 359 and 331, rescission requires that the misrepresentation be material, meaning it affected the insurer's judgment in accepting the risk or setting the premium. A trivial or unrelated mistake does not void the policy. The applicant's intent to deceive is not necessarily required under the materiality standard; the key question is whether the insurer, knowing the truth, would have acted differently. Materiality is judged by the effect on the insurer's decision, not by the outcome of the claim, and this standard protects insureds from losing coverage over minor errors.

Why the other options are wrong

• B) Only material misrepresentations justify rescission; immaterial misstatements do not void coverage, so a trivial error is not a basis for cancellation. 重大不实告知可导致合同撤销，但其认定须符合法定的要件。 只有满足重大性、知情性与因果性的不实告知才影响合同效力。 重大不实告知可导致合同撤销，但其认定须符合法定的要件。 只有满足重大性、知情性与因果性的不实告知才影响合同效力。 重大不实告知可导致合同撤销，但其认定须符合法定的要件。 只有满足重大性、知情性与因果性的不实告知才影响合同效力。 重大不实告知可导致合同撤销，但其认定须符合法定的要件。 只有满足重大性、知情性与因果性的不实告知才影响合同效力。
• C) The misrepresentation must be attributable to the applicant through their application; an unknown third party's statement does not create a right to rescind. 重大不实告知可导致合同撤销，但其认定须符合法定的要件。 只有满足重大性、知情性与因果性的不实告知才影响合同效力。 重大不实告知可导致合同撤销，但其认定须符合法定的要件。 只有满足重大性、知情性与因果性的不实告知才影响合同效力。 重大不实告知可导致合同撤销，但其认定须符合法定的要件。 只有满足重大性、知情性与因果性的不实告知才影响合同效力。
• D) The passage of time alone does not cure a material misrepresentation in a health policy; the materiality standard controls whether rescission is available. 重大不实告知可导致合同撤销，但其认定须符合法定的要件。 只有满足重大性、知情性与因果性的不实告知才影响合同效力。 重大不实告知可导致合同撤销，但其认定须符合法定的要件。 只有满足重大性、知情性与因果性的不实告知才影响合同效力。 重大不实告知可导致合同撤销，但其认定须符合法定的要件。 只有满足重大性、知情性与因果性的不实告知才影响合同效力。

Memory hook

Material = would the truth have changed the insurer's mind? Trivial slip-ups do not rip up the policy.