Completing the Application, Underwriting, and Delivering the Policy
How does a life insurance application characterize the applicant's answers?
Answer and explanation
Answer: C. Section 2(K) requires the application to state that the proposed insured has read the application and that the statements and answers are true and complete to the best of their knowledge and belief. That knowledge-and-belief standard is what distinguishes a representation from a warranty guaranteed literally true, and the answers are neither disregarded nor treated as loose estimates.Source: Interstate Insurance Product Regulation Commission — Individual Life Insurance Application Standards — § 2(K), Agreements
More completing the application, underwriting, and delivering the policy questions
- When a corporation is the proposed policyowner, what should identify the person signing for it?
- When a policyowner stops paying premiums, allowing a term life policy to lapse, the insurer cannot take legal action to force the owner to continue making payments. Which characteristic of insurance contracts does this limitation reflect?
- Where an applicant submits a completed application together with the initial premium, who has made the offer?
- Which applicant statement is best characterized as a representation?
- Which pairing of the insurance contract's unique features is stated correctly?
- Which question does consumer guidance say an owner should be able to answer after reading a delivered policy?
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