California Insurance License Exam Practice Test Practice Question
The entire contract provision states that
Correct Answer: C
Rationale: Option C accurately reflects the principle of "entire contract" in insurance, which states that the policy and the application together represent the complete agreement between the insurer and the insured. This ensures that no external documents or verbal agreements can alter the terms.
Option A is incorrect as it implies that premiums are due for the entire contract term, which may not always be the case depending on the policy type. Option B misrepresents the concept of insurable interest, which is only required at the inception of the contract, not throughout its term. Option D incorrectly suggests that cash values are accessible at any time, while access may depend on specific conditions outlined in the policy.
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