New York Insurance Exam Practice Question
What is a material misrepresentation in an insurance application?
Correct Answer: B
Rationale: A material misrepresentation in an insurance application refers to a false statement that could influence the insurer's decision-making process. Option B accurately captures this definition, as it highlights the potential impact of the misrepresentation on the insurer's assessment of risk.
Option A, a minor error in personal details, does not significantly affect the insurer's decision and is typically not considered material. Option C, a typo in the application, generally does not alter the substance of the information provided. Option D, a change in premium payment, pertains to payment terms rather than the accuracy of the information submitted, making it irrelevant in this context.
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