Sue applies for a fire insurance policy for her warehouse from A&I Insurance Company. To obtain a lower premium, she misrepresents the age of the property. The policy is granted. After the warehouse is destroyed by fire, A&I learns the truth. In this situation, A&I

a. can refuse to pay on the ground of fraud in the application.

b. can refuse to pay on the ground that the warehouse has been destroyed by fire.

c. cannot refuse to pay because an application is not part of an insurance contract.

d. cannot refuse to pay because the warehouse has been destroyed by fire.