A warranty is a statement made by the applicant regarding the risk to be insured. Which of the following statements is NOT true about warranties?

A) A warranty is guaranteed to be true.

B) A warranty must refer to a material fact.

C) A policy can be cancelled if the warranty is false.

D) A warranty is part of the contract.

Answer: B

Insurance Transaction

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A domestic insurer issuing variable contracts must establish one or more
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A beneficiary change can occur
No existing agent's license will be revoked until
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Ambiguities in an insurance policy are always resolved in favor of the
In an insurance contract, the applicant's "consideration" is the
Agents may be found guilty of defamation if they make a false statement that is intended to?
How many pair of glasses in a 12-month period will a vision expense insurance plan cover?
The voluntary relinquishment of a legal right is called
What documentation grants express authority to an agent?
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Which nonforfeiture option provides coverage for the longest period of time?
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Which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE?
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All of the following are true regarding a decreasing term policy EXCEPT
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Life income joint and survivor settlement option guarantees
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What documentation grants express authority to an agent?

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