14602 74 of 90 An insurer issues a policy and later discovers the insured had, at the time of application, made a misrepresentation. Which one (1) of the following options can the insurer take? The insurer can cancel the policy and retain the full premium as a pienialty. The insurer can void the contract at its option. The insurer has grounds for refusing to renew the policy. The insurer cannot do anything as the misrepresentation has no bearing on the effectiveness of the policy. Misrepresentation discovered by an insurer may result in the policy being voided. Which one (1) of the following circumstances must the insurer show occurred to legally void the policy? The misrepresentation was malicious. The misrepresented fact was material to the risk. The misrepresentation was the result of extreme carelessness by the insured's broker. The misrepresented fact was the product of collusion between the insured and the broker.

14602 74 of 90 An insurer issues a policy and later discovers the insured had, at the time of application, made a misrepresentation. Which one (1) of the following options can the insurer take? The insurer can cancel the policy and retain the full premium as a pienialty. The insurer can void the contract at its option. The insurer has grounds for refusing to renew the policy. The insurer cannot do anything as the misrepresentation has no bearing on the effectiveness of the policy. Misrepresentation discovered by an insurer may result in the policy being voided. Which one (1) of the following circumstances must the insurer show occurred to legally void the policy? The misrepresentation was malicious. The misrepresented fact was material to the risk. The misrepresentation was the result of extreme carelessness by the insured's broker. The misrepresented fact was the product of collusion between the insured and the broker.