In order for the courts to find a nondisclosure of a material fact to be equated with and have the same legal effect as a false assertion, the following elements must be present
1) A relationship of trust exists between the parties to the contract
2) There is failure to correct assertions of fact that are no longer true
3) A statute requires the disclosure, such as mandatory disclosures under residential real estate sales laws
4) The nondisclosure involves a dangerous defect, such as bad breaks in a car that is being sold

The correct answers are :

1) A relationship of trust exists between the parties to the contract

2) There is failure to correct assertions of fact that are no longer true

3) A statute requires the disclosure, such as mandatory disclosures under residential real estate sales laws

4) The nondisclosure involves a dangerous defect, such as bad breaks in a car that is being sold

Explanation:

The concepts refer to what the insurer needs To know. It has to do with an issue that may easily jeopardize insurance coverage.  It refers as well to the insurance contract and the relevant things in it. The facts, in this case, is the evidence (the important one)than can be related directly to the conflict at hand

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