Pennsylvania Life and Health Insurance Exam Practice Question
Statements made on an application that the insured guarantees to be true are
Correct Answer: D
Rationale: Warranties are statements made by the insured that are guaranteed to be true, forming a critical part of the insurance contract. If a warranty is found to be untrue, it can lead to the denial of a claim or cancellation of the policy.
Material facts (A) refer to important information that could influence the insurer's decision but are not guaranteed to be true. Waivers (B) involve the voluntary relinquishment of a known right, while estoppel (C) prevents a party from arguing something contrary to a claim they previously made. Neither of these terms pertains to guaranteed truths in an application.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now