Multiple Choice
Frank is shopping for a disability income policy. Which of the following features would most likely reduce the premium he pays for the policy?
25
views
1. Introduction to Accounting
Useful Information
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
In the context of insurance applications, what are statements called that are made by the applicant and believed to be true?
A
Representations
B
Endorsements
C
Covenants
D
Warranties
Verified step by step guidance1
Understand the context of the question: It pertains to insurance applications and the nature of statements made by applicants.
Review the term 'Representations': In insurance, representations are statements made by the applicant that are believed to be true to the best of their knowledge and are not guaranteed to be absolutely accurate.
Contrast 'Representations' with 'Warranties': Warranties are guarantees of truth and accuracy, and if found false, can void the insurance contract.
Consider 'Endorsements': These are amendments or additions to an insurance policy, not related to the applicant's statements.
Evaluate 'Covenants': These are promises or agreements, typically found in contracts, but not specifically related to insurance applications.
3:16mWatch next
Master Fundamental Qualitative Characteristics with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Useful Information practice set
Problem sets built by lead tutorsExpert video explanations