---
title: "Decide which state’s pre-contract disclosure rule applies to the insurance contract"
url: "https://ailawframework.com/practice/insurance-law/decide-which-pre-contractual-duty-applies-to-the-insurance-contract/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A22-MA20261022-1-US"
practice_area: "Insurance Law"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Decide which state’s pre-contract disclosure rule applies to the insurance contract

> From the policy and the proposal, list the governing-law clause, the place the contract was made, and any fact the file says was known to one party and not communicated. Do not decide that a duty was breached.

Canonical page: https://ailawframework.com/practice/insurance-law/decide-which-pre-contractual-duty-applies-to-the-insurance-contract/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Insurance Law](https://ailawframework.com/practice/insurance-law.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | From the policy and the proposal, list the governing-law clause, the place the contract was made, and any fact the file says was known to one party and not communicated. Do not decide that a duty was breached. |
| What the lawyer must review | 15 U.S.C. § 1012(a) subjects the business of insurance, and every person engaged in it, to the laws of the several States which relate to the regulation or taxation of that business. Subsection (b) says no Act of Congress shall be construed to invalidate, impair, or supersede any law enacted by any State for the purpose of regulating the business of insurance unless the Act specifically relates to the business of insurance. California Insurance Code § 332 says 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. You decide which state’s statute applies. Do not start from the Insurance Contracts Act 1984 (Cth) duty categories. |
| Written for | United States |
| Applies to | [Decide which pre-contractual duty applies to the insurance contract](https://ailawframework.com/practice/insurance-law/decide-which-pre-contractual-duty-applies-to-the-insurance-contract.md) |

## Checking plan

- What the AI does: From the policy and the proposal, list the governing-law clause, the place the contract was made, and any fact the file says was known to one party and not communicated. Do not decide that a duty was breached.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- Section 332 is California. Another state may put the duty only on the applicant, or only in the application questions.
- Section 1012(b) keeps the Sherman Act, the Clayton Act, and the Federal Trade Commission Act applicable to the business of insurance to the extent state law does not regulate it, after 30 June 1948.

## Sources

- [15 U.S.C. § 1012, regulation of the business of insurance by State law (McCarran-Ferguson Act)](https://www.law.cornell.edu/uscode/text/15/1012) (checked 2026-10-22)
- [California Insurance Code § 332, communication of material facts](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=INS&sectionNum=332.) (checked 2026-10-22)

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*