An applicant for a life policy answers 'no' to a question about prior cardiac treatment, despite having had a stent placed two years earlier. The insurer issues the policy and the insured dies within the contestable period; underwriting affidavits show the truthful answer would have caused decline. Under the general law of insurance contracts, the misrepresentation is treated as:

Why this is the answer

Under the majority American rule (Restatement (Second) of Contracts §164 and state insurance statutes), an insurer may rescind a life policy within the contestable period for a material misrepresentation in the application. Materiality is defined as whether a truthful answer would have caused the insurer to decline, charge more, or modify terms — an underwriting-impact test. Causal connection between the misrep and the actual cause of death is NOT required; the insurer is entitled to rescind even if death was unrelated. Modern law treats the application statements as representations (not warranties), so the insurer must prove materiality but need not prove fraudulent intent in most jurisdictions.