Which of the following situations describes a representation? OA An insurance company guarantees that pollicy benefits will be paid promptly on receipt of a Proof of Loss OB. An insurance company guarantees that premiums paid will be refunded within 30 days after the policy's effective date if an insured is desatisfied with the policy A prospect's statement on an application that is held to be substantially true OC OD. A prospect's statement on an application that is held to be absolutely true Calculator A producer has taken an application for an individual Disability Income policy, collected a premium, and given the applicant a conditional receipt, which of CORRECT about this situation? OA COB. O C O D. Since the producer collected a premium when taking the application, the insured is guaranteed coverage as of the date of the application As soon as the insurance company receives the application and premium, it will sue a policy to the applicant with the date of receipt becoming the effective dotos of the policy. The insurance company will issue a policy to the applicant only if the company has sed the applicant a life polley on a standard beds within the previous 6 months The Insurance company will complete standard anderweiting procedures before making a decen about whether to insure the applicant
Which of the following situations describes a representation? OA An insurance company guarantees that pollicy benefits will be paid promptly on receipt of a Proof of Loss OB. An insurance company guarantees that premiums paid will be refunded within 30 days after the policy's effective date if an insured is desatisfied with the policy A prospect's statement on an application that is held to be substantially true OC OD. A prospect's statement on an application that is held to be absolutely true Calculator A producer has taken an application for an individual Disability Income policy, collected a premium, and given the applicant a conditional receipt, which of CORRECT about this situation? OA COB. O C O D. Since the producer collected a premium when taking the application, the insured is guaranteed coverage as of the date of the application As soon as the insurance company receives the application and premium, it will sue a policy to the applicant with the date of receipt becoming the effective dotos of the policy. The insurance company will issue a policy to the applicant only if the company has sed the applicant a life polley on a standard beds within the previous 6 months The Insurance company will complete standard anderweiting procedures before making a decen about whether to insure the applicant
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:Which of the following situations describes a representation?
OA An insurance company guarantees that pollicy benefits will be paid promptly on receipt of a Proof of Loss
OB.
An insurance company guarantees that premiums paid will be refunded within 30 days after the policy's effective date if an insured is desatisfied with the policy
A prospect's statement on an application that is held to be substantially true
OC
OD.
A prospect's statement on an application that is held to be absolutely true
Transcribed Image Text:Calculator
A producer has taken an application for an individual Disability Income policy, collected a premium, and given the applicant a conditional receipt, which of
CORRECT about this situation?
OA
COB.
O C
O D.
Since the producer collected a premium when taking the application, the insured is guaranteed coverage as of the date of the application
As soon as the insurance company receives the application and premium, it will sue a policy to the applicant with the date of receipt becoming the effective dotos of the
policy.
The insurance company will issue a policy to the applicant only if the company has sed the applicant a life polley on a standard beds within the previous 6 months
The Insurance company will complete standard anderweiting procedures before making a decen about whether to insure the applicant
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