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State RegulationsCA specificVerified · outline & fact-checked · Sep 2026Difficulty 2/5

Under California law, a representation made by an applicant in an insurance application:

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Answer & full 3-part explanation (select an option above, or peek)

Why A is correct

Under CIC Section 355, a representation may be altered or withdrawn before the contract is concluded. A representation is not a warranty: it is a statement made to induce the contract, and the applicant retains the right to correct it up until the contract is finalized — for example, when a new condition develops before delivery.

Why the other options are wrong

  • B) Representations and warranties are different concepts; a representation does not automatically become a warranty merely by being written down.
  • C) A conditional receipt does not freeze the application; representations can still be corrected until the contract is actually concluded.
  • D) Representations speak as of the time the contract is formed; they do not need to be repeated at renewal to stay effective.

Memory hook

Representation = a statement you can still take back before the deal closes. Warranty = locked in. Know the difference — it is a classic exam trap.

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