Which of the following best describes a misrepresentation?

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Which of the following best describes a misrepresentation?

A. Making a deceptive or untrue statement about a person engaged in the insurance business

B. Making a maliciously critical statement that is intended to injure another person

C. Discriminating among individuals of the same insuring class

D. Issuing sales material with exaggerated statements about policy benefits

Answer: D. Issuing sales material with exaggerated statements about policy benefits

Life Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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James is the insured on a life insurance policy where his age was misstated on the application. Which of the following is CORRECT regarding the death benefit amount?

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The voluntary relinquishment of a legal right is called
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