Timothy is trying to understand the difference between a warranty and a representation. He is concerned that he might inadvertently give a false statement on his insurance application. A representation is:

a. Any statement made on the application is absolutely true without any deviation

(b.) Any statement made is true to the best of the applicant's recollection, but facts may not be exact

c. An insurance company guarantees that all benefits will be paid promptly

d. An insurance company will refund all premiums if the policyholder is not satisfied.

Answer: B

Insurance

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In an insurance contract, the applicant's "consideration" is the
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The voluntary relinquishment of a legal right is called
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