A person's failure to share financial planning information could result in which outcome?

• A. I only
• B. Neither I nor II
• C. II only
• D. Both I and II

Answer: (C)

Not sharing financial planning information is a concealment that can be material to underwriting in a life insurance contract. When a fact is material, the insurer relies on full disclosure to assess risk, set premiums, and decide on coverage. If the applicant withholds such information, the insurer has a basis to challenge the contract—often by denying a claim or rescinding the policy if the concealment is discovered and deemed material. The outcome described in the second statement aligns with this principle: nondisclosure can affect the contract or its benefits, while the other described outcome would not logically follow from failing to reveal this information. In short, failure to disclose material financial planning information is treated as misrepresentation/ concealment, and the remedy is tied to denying or rescinding benefits rather than other unrelated results.