Pennsylvania Life and Health Insurance Exam Practice Question
Which of the following best defines a warranty in an insurance contract?
Correct Answer: D
Rationale: A warranty in an insurance contract refers to a statement that must be true and is guaranteed as such. Option A describes a statement that is guaranteed to be true, aligning with the definition of a warranty. Option C emphasizes that a warranty is an absolute guarantee of a condition's truth, which is also accurate. Option B, however, suggests a statement made to the best of one’s knowledge, which does not meet the strict requirements of a warranty, as it allows for uncertainty. Therefore, options A and C together capture the essence of a warranty, making D the best choice.
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