P&CNew Yorkhard
An NY commercial property insurer learns three years after binding that the applicant failed to disclose two prior arson-related claims on the application. Under NY Insurance Law § 3105, the insurer may rescind the policy only if it can prove which standard?
That the misrepresentation was material — i.e., knowledge of the facts would have caused the insurer to refuse to make the contract
BThat the misrepresentation was intentional, regardless of materiality
CThat the insured had a confessed criminal history
DThat the misrepresentation increased the actual loss amount
Why this is the answer
NY § 3105 codifies misrepresentation/concealment doctrine: a misstatement voids the policy only if material, and 'material' means knowledge of the truth would have led the insurer to refuse to issue the contract (or to charge a higher premium/different terms, under case law extension). The standard is objective and underwriting-focused; intent to deceive is not required, nor is a causal link between the misrepresentation and the actual loss. Materiality is typically shown by underwriting-manual evidence and underwriter affidavits.
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