Completing the Application, Underwriting, Delivering Policies, Contract Law
Which applicant statement is best characterized as a representation?
Answer and explanation
Answer: C. A representation is an applicant's statement made to the best of the applicant's knowledge and belief, rather than an absolute warranty. A producer also lacks authority to waive or change contract conditions merely by assertion.Source: Interstate Insurance Product Regulation Commission — Individual Life Insurance Application Standards — § 3.K. Agreements (1)(a) and (c)
More completing the application, underwriting, delivering policies, contract law questions
- A legal-age Texas applicant buys insurance on her own life and names a charitable corporation as beneficiary in writing on the application. Which statement is accurate?
- A life application authorizes the insurer to obtain information from a third-party provider but does not describe the information or provider type. What is missing?
- A life insurance policyowner may stop paying premiums at any time without legal penalty, but the insurer is legally bound to pay the death benefit if the insured dies while the policy is in force. This situation best illustrates which legal characteristic of an insurance contract?
- A parent applies for life insurance on a 9-year-old child. Who must sign the application besides the producer?
- A policy is arranged at inception solely so an unrelated investor can wager on the insured's death. Which required element of a legal contract is most directly missing or violated?
- A policy is issued as applied for and delivered while the insured is alive, but the owner refuses to pay the first premium. Under the standard application agreement, what follows?
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