Which fact must Ruth disclose when submitting a proposal for commercial insurance?

In the context of submitting a proposal for commercial insurance, it is essential to understand the principle of material facts. Material facts are those that could influence an insurer's decision on whether to accept a risk and, if so, under which terms and conditions.

The correct answer is that none of the facts must be disclosed if they are not material to the insurer's assessment of the risk. Materiality depends on the specific circumstances and the relevance of the information to the particular insurance being sought. For example, the proximity of a police station, the presence of a sprinkler system, or historical incidents like previous riots might be important in some contexts but not necessarily in every insurance proposal.

Thus, Ruth would only need to disclose facts that are considered material to the risk assessment by the insurer. If none of the options presented are deemed material in her situation, then it's correct that none need be disclosed. The focus here is on whether the information would impact the insurer's evaluation of the risk, and if the information is not relevant or does not affect that evaluation, it does not need to be disclosed. This understanding is crucial for anyone involved in the insurance industry, as it highlights the importance of transparency and the need to provide all relevant information when it could influence underwriting