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Question: 1 / 400

What is the relationship between 'Material Fact' and insurance contracts?

It has no significant impact

It influences insurers' decisions on risk acceptance

Insurance contracts are legally binding agreements between an insurer and a policyholder. In this context, 'Material Fact' refers to any important information that could potentially influence an insurer's decision to accept or reject a risk. Therefore, the relationship between 'Material Fact' and insurance contracts is that it plays a crucial role in an insurer's decision-making process. Option A is incorrect because 'Material Fact' has a significant impact on insurance contracts. Option C is incorrect because it is not referring to the physical material of the contract, but rather the important information within the contract. Option D is incorrect because 'Material Fact' is important for all types of insurance contracts, not just life insurance.

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It refers to the physical material of the contract

It only matters for life insurance contracts

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