Franco Rossini applies for a comprehensive insurance policy for his business premises. He neglects to mention that he made a claim for loss on his previous policy, which was with a different insurer

The policy is issued, and four months later there is a fire on the premises. When Franco makes a claim, the insurer refuses to pay. Which of the following is TRUE?

A) An applicant for insurance has a duty to reveal any important matters that might affect the assessment of the risk.
B) Since Franco was not specifically asked whether he had any prior claims, he did not breach his duty to disclose, and the insurer must pay.
C) The duty to disclose risk factors on an application for insurance tends to be strictly enforced.
D) Since the fact that Franco had a prior claim would not materially affect the insurer's assessment of risk, he did not breach his duty to disclose, and the insurer must pay.
E) Both A and C

E