1.

Concept

-SEC.26.Anegl
ectt
ocommuni
cat
ethatwhi
chapar
tyknowsandoughtt
ocommuni
cat
e,i
s
cal
ledaconceal
ment.

2.Dut
ytocommuni
cat
e

-SEC.28.Eachpartytoacontractofinsur
ancemustcommuni cat
etotheot
her,i
ngoodfai
th,
al
lfactswit
hinhi
sknowl edgewhi charemateri
alt
othecontractandastowhichhemakesno
warrant
y,andwhichtheotherhasnott hemeansofascert
aining.

3.Testofmat
eri
ali
ty-31

-SEC.31.Materi
ali
tyistobedeter
minednotbytheev
ent,butsol
elybytheprobabl
eand
reasonabl
einf
luenceofthefact
suponthepart
ytowhom thecommuni cati
onisdue, i
nfor
ming
hisesti
mateofthedisadvant
agesofthepr
oposedcontr
act,ori
nmakinghisinquir
ies.

4.Ef
fectofconceal
ment-27,
29,

SEC.27.Aconceal
mentwhet
heri
ntent
ional
oruni
ntent
ional
ent
it
lest
hei
njur
edpar
tyt
oresci
nd
acontr
actofi
nsurance

SEC.29.Anint
ent
ionalandfraudul
entomi
ssi
on,
onthepartofonei
nsured,t
ocommuni
cate
i
nformati
onofmatter
spr ov
ingortendi
ngt
oprovet
hefal
sityofawar
ranty,
enti
tl
est
hei
nsurer
toresci
nd.

5.Mat
ter
swhi
chneednotbecommuni
cat
ed-30,
32,
34,
35

SEC.30.Neit
herpart
ytoacont
ractofi
nsur
anceisboundtocommuni
cat
einf
ormat
ionoft
he
matter
sfol
lowing,
excepti
nanswertot
heinqui
ri
esoftheother
:

“
(a)Thosewhi
cht
heot
herknows;

“
(b)Thosewhi
ch,int
heexerci
seofordinar
ycare,
theot
heroughtt
oknow,
andofwhi
cht
he
f
ormerhasnoreasontosupposehi
mi gnorant
;

“
(c)Thoseofwhi
cht
heot
herwai
vescommuni
cat
ion;

“
(d)Thosewhi
chpr
oveort
endtoprov
etheexi
stenceofar
iskexcl
udedbyawar
rant
y,and
whi
charenotot
her
wisemat
eri
al;
and

“
(e)Thosewhi
chr
elat
etoar
iskexcept
edf
rom t
hepol
i
cyandwhi
char
enotot
her
wisemat
eri
al.

SEC.32.Eachpartytoacontractofi
nsuranceisboundtoknowal
lthegener
alcauseswhi
chare
opentohisinquir
y,equal
l
ywi t
hthatoftheother,andwhi
chmayaff
ectthepoli
ti
calormat
eri
al
peri
l
scontempl at
ed;andall
generalusagesoftrade.

SEC.34.I
nfor
mat
ionoft
henat
ureoramountoft
hei
nter
estofonei
nsur
edneednotbe
communi
cat
edunl
essi
nanswert
oani
nqui
ry,
exceptaspr
escr
ibedbySect
ion51.

SEC.35.Nei
therpar
tyt
oacontractofi
nsur
anceisboundt
ocommuni
cat
e,ev
enuponi
nqui
ry,
i
nfor
mat i
onofhisownjudgmentuponthematt
ersi
nquest
ion.

6.Wai
verofi
nfor
mat
ion-33

SEC.33.Theri
ghttoinformat
ionofmater
ialfactsmaybewaived,ei
therbyt
hetermsof
i
nsuranceorbyneglecttomakeinqui
ryastosuchf act
s,wher
etheyaredist
inct
lyi
mpl
iedi
n
otherf
actsofwhi
chi nfor
mati
oniscommuni cated.

B.REPRESENTATI
ON

1.Concept-36

SEC.36.Ar
epr
esent
ati
onmaybeor
alorwr
it
ten.

2.Ki
ndsofr
epr
esent
ati
on-
36,
37,
39,
42

SEC.36.Ar
epr
esent
ati
onmaybeor
alorwr
it
ten.

“
SEC.37.Ar
epr
esent
ati
onmaybemadeatt
het
imeof
,orbef
ore,
issuanceoft
hepol
i
cy.

“
SEC.39.Arepr
esent
ati
onastothefutur
ei stobedeemedapr
omi
se,
unl
essi
tappear
sthati
t
wasmerel
yastatementofbel
i
eforexpectati
on.

SEC.42.Arepr
esent
ati
onmustbepr
esumedt
oref
ert
othedat
eonwhi
cht
hecont
ractgoes
i
ntoeffect
.

3.Testofmat
eri
ali
ty-46

SEC.46.Themat
eri
ali
tyofar
epr
esent
ati
oni
sdet
ermi
nedbyt
hesamer
ulesast
hemat
eri
ali
ty
ofaconceal
ment
.

4.Ef
fectofal
ter
ati
onorwi
thdr
awal
-41

SEC.41.Arepr
esent
ati
onmaybeal
ter
edorwi
thdr
awnbef
oret
hei
nsur
ancei
sef
fect
ed,
butnot
aft
erwards.

5.Ti
met
owhi
chr
epr
esent
ati
onr
efer
s-42

“
SEC.42.Arepr
esent
ati
onmustbepr
esumedt
oref
ert
othedat
eonwhi
cht
hecont
ractgoes
i
ntoef
fect
.

6.Ef
fectwhenr
epr
esent
ati
oni
sobt
ainedf
rom t
hir
dper
sons-43

SEC.43.Whenapersoninsur
edhasnopersonalknowl
edgeofafact,
hemaynever
thel
ess
repeati
nfor
mat
ionwhichhehasuponthesubject
,andwhichhebel
ievest
obet
rue,wit
hthe
explanat
ionthathedoessoontheinfor
mat i
onofothers;orhemaysubmi tt
heinfor
mati
on,
in
i
tswhol eextent
,tot
heinsur
er;
andinneithercaseisheresponsibl
efori
tstr
uth,unl
essi
t
proceedsfrom anagentoft
heinsur
ed,whosedut yi
tistogivetheinf
ormati
on.

7.Whenpr
esumedf
alse;
eff
ectoff
alsi
ty-44,
45

SEC.44.Ar
epresentati
onist
obedeemedf
alsewhent
hef
act
sfai
ltocor
respondwi
thi
ts
asser
ti
onsorsti
pulati
ons.

“
SEC.45.Ifarepr
esentat
ionisfal
seinamateri
alpoi
nt,
whetheraf
fi
rmati
veorpromissor
y,t
he
i
njuredpar
tyi
sentit
ledtoresci
ndthecont
ractf
rom t
hetimewhentherepresent
ati
onbecomes
f
alse.

C.Remedi
esav
ail
abl
eincaseofconceal
mentorf
alser
epr
esent
ati
on

1.Whenr
esci
ssi
onbyt
hei
nsur
ermaybeexer
cised-48

SEC.48.Whenev erarightt
oresci
ndacontractofi
nsur
anceisgi
ventothei
nsur
erbyany
provi
sionofthi
schapter,suchr
ightmustbeexerci
sedprev
ioust
othecommencementofan
acti
onont hecontract
.

“Afterapolicyofl i
fei
nsur
ancemadepay ableonthedeathoftheinsuredshallhav
ebeeni n
forceduringt heli
feti
meoftheinsuredforaperi
odoft wo(2)yearsfrom thedateofit
sissueor
ofitslastreinstat
ement,t
heinsurercannotprovethatt
hepoli
cyisv oidabini
ti
oori s
rescindablebyr easonoft
hefraudulentconceal
mentormi sr
epresentati
onoftheinsuredorhi
s
agent .

2.Whenl
i
fei
nsur
ancepol
i
cybecomesi
ncont
est
abl
e-48

a.Requi
sit
esf
ori
ncont
est
abi
l
ity

b.Theor
yandobj
ectofi
ncont
est
abi
l
ity

c.Def
ensesnotbar
redbyi
ncont
est
abi
l
ity

D.War
rant
ies

1.Concept
;di
sti
ngui
shf
rom r
epr
esent
ati
on

2.Ki
ndsofwar
rant
ies-expr
ess,
impl
i
ed,
aff
ir
mat
ive,
promi
ssor
y

3.Ti
met
owhi
chwar
rant
yref
ers-68

SEC.68.Awar
rant
ymayr
elat
etot
hepast
,thepr
esent
,thef
utur
e,ort
oanyoral
loft
hese.

4.Ef
fectofbr
each-74,
75,
76
SEC.74.Thevi
olat
ionofamateri
alwarrant
y ,
orothermat
eri
alpr
ovi
sionofapol
i
cy,
ont
hepar
t
ofei
therpar
tyt
hereto,
enti
tl
estheothertoresci
nd.

“SEC.75.Apoli
cymaydeclar
ethataviol
ati
onofspeci
fi
edprovi
sionst
hereofshal
lav
oidi
t,
other
wisethebreachofani
mmat er
ial
provi
siondoesnotav
oidthepol
icy
.

“SEC.76.Abr
eachofwarr
ant
ywithoutf
raudmerelyexoner
atesani
nsurerfr
om t
hetimethati
t
occurs,
orwherei
tisbr
okeni
nit
sincept
ion,pr
eventsthepol
icyf
rom at
tachi
ngtotheri
sk.