Which of the Following,if Any,will ABC Insurance Most Likely Be

Multiple Choice

Which of the following,if any,will ABC Insurance most likely be required to prove in order to deny coverage based on the discrepancy between the application and Bobby's driving?

A) Only that Sally's misrepresentation was material.
B) Only that the company's knowledge of the misrepresentation would have resulted in rejection of Sally's application.
C) Both that Sally's misrepresentation was material and that knowledge of the misrepresentation would have resulted in the refusal to provide insurance.
D) That Sally's misrepresentation was material; that knowledge of the misrepresentation would have resulted in rejection of her application; and that the insurer's loss would be in an amount over $10,000.
E) There is no proof that ABC Insurance can provide to avoid coverage because, as a matter of law, it is clear that coverage must be provided based on Bobby's permissive use of the vehicle.