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Question
Bart is convicted of arson for burning down his warehouse to collect the insurance. On an application for insurance on a new building, in answer to a question about prior convictions, Bart does not disclose his conviction. This makes the contracta. binding because the statement is immaterial to the decision of the insurance company to issue coverage.
b. binding due to the failure of the insurance company to discover Bart's conviction.
c. voidable at the option of Bart because the question is immaterial to the decision to issue coverage.
d. voidable at the option of the insurance company because the statement is material to the decision to issue coverage.
Answer
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