New Jersey Life Insurance Exam Practice Question
The proposed insured’s statements on a life insurance application are considered to be
Correct Answer: C
Rationale: In life insurance applications, the proposed insured's statements are considered representations. These are statements made to the best of the applicant's knowledge and belief, intended to provide the insurer with relevant information about risk.
Option A, absolute statements, implies certainty that is not typically present in these disclosures. Option B, misrepresentations, refers to false statements made intentionally or unintentionally that can void a policy, which does not apply to truthful representations. Option D, warranties, are guarantees that certain conditions are met, which is not the case for statements in an application.
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