ABC Life Insurance Company Insures Both Smokers and Nonsmokers

ABC Life Insurance Company insures both smokers and nonsmokers.Beth lied on her life insurance application,checking the box for "no" in response to the question of whether she smokes cigarettes or uses other tobacco products.Even though Beth smokes 10 to 15 cigarettes each day,the policy was issued at the "preferred nonsmoker rate." Beth's lie is material in this case because

A) it was in writing on the application.
B) it was given with the intent to deceive.
C) the policy would have been issued on different terms if the insurer knew the true facts.
D) the policy would have been issued for a lower face value if the insurer knew the true facts.