What aspect of the insurance contract must be fully disclosed by the proposer?

The correct answer emphasizes the necessity for the proposer to disclose all material facts that could influence the insurer's decision. In the context of an insurance contract, material facts refer to any information that could affect the assessment of risk or the terms of coverage offered by the insurer. This broad requirement encompasses various aspects, including health-related issues, details about the property, previous claims, and any other circumstances that could impact the insurer’s willingness to accept the risk or determine appropriate premiums.

Complete transparency in these disclosures is critical because if a proposer fails to share relevant information, it could lead to a refusal of a claim or even voiding of the policy. Insurers rely heavily on the disclosed information to evaluate risk and set terms, so the duty of disclosure is foundational to the insurance contract's integrity. By ensuring that all material facts are communicated, proposers uphold the principle of utmost good faith, which is a fundamental component of insurance contracts.