SECTIONS 330-339 - California Statutes

INSURANCE CODE

SECTION 330-339

330. Neglect to communicate that which a party knows, and ought to
communicate, is concealment.

331. Concealment, whether intentional or unintentional, entitles
the injured party to rescind insurance.

332. Each party to a contract of insurance shall communicate to the
other, in good faith, all facts within his knowledge which are or
which he believes to be material to the contract and as to which he
makes no warranty, and which the other has not the means of
ascertaining.

333. Neither party to a contract of insurance is bound to
communicate information of the matters following, except in answer to
the inquiries of the other:
1. Those which the other knows.
2. Those which, in the exercise of ordinary care, the other ought
to know, and of which the party has no reason to suppose him
ignorant.
3. Those of which the other waives communication.
4. Those which prove or tend to prove the existence of a risk
excluded by a warranty, and which are not otherwise material.
5. Those which relate to a risk excepted from insurance, and which
are not otherwise material.

334. Materiality is to be determined not by the event, but solely
by the probable and reasonable influence of the facts upon the party
to whom the communication is due, in forming his estimate of the
disadvantages of the proposed contract, or in making his inquiries.

335. Each party to a contract of insurance is bound to know:
(a) All the general causes which are open to his inquiry equally
with that of the other, and which may affect either the political or
material perils contemplated.
(b) All the general usages of trade.

336. The right to information of material facts may be waived,
either (a) by the terms of insurance or (b) by neglect to make
inquiries as to such facts, where they are distinctly implied in
other facts of which information is communicated.

337. Information of the nature or amount of the interest of one
insured need not be communicated unless in answer to an inquiry,
except as prescribed by section 381, or by the provisions of the
insurance contract if such provisions are prescribed by this code as
part of a standard form.

338. An intentional and fraudulent omission, on the part of one
insured, to communicate information of matters proving or tending to
prove the falsity of a warranty, entitles the insurer to rescind.

339. Neither party to a contract of insurance is bound to
communicate, even upon inquiry, information of his own judgment upon
the matters in question.