Which parts of a life insurance policy are guaranteed to be true?

Which parts of a life insurance policy are guaranteed to be true?

• A. Conditions
• B. Warranty
• C. Exclusions
• D. Endorsements

Answer: (B)

The correct choice relates to the concept of warranties in a life insurance policy. A warranty is a statement or promise in the insurance contract that is guaranteed to be true. In the context of life insurance, these are typically factual statements provided by the policyholder, such as their health status or lifestyle habits, which must stand as accurate for the contract to be valid. When a warranty is included in a policy, the insurer relies on the truthfulness of that information. If a warranty is found to be untrue, the insurer may have the right to deny a claim or void the policy. This underscores the significance of warranties—they are not merely aspirational; they are definitive and legally binding aspects of the contract that must reflect reality. In contrast, conditions outline the duties and responsibilities of both the insurer and the insured, but they are not necessarily guaranteed statements. Exclusions specify what is not covered by the policy, and while they may outline limitations, they do not guarantee truth in the same way warranties do. Endorsements can modify or add terms to a policy, but they also do not constitute guaranteed truths. Thus, warranties are the only aspect of a life insurance policy that carries a guaranteed truthfulness requirement.

The correct choice relates to the concept of warranties in a life insurance policy. A warranty is a statement or promise in the insurance contract that is guaranteed to be true. In the context of life insurance, these are typically factual statements provided by the policyholder, such as their health status or lifestyle habits, which must stand as accurate for the contract to be valid.

When a warranty is included in a policy, the insurer relies on the truthfulness of that information. If a warranty is found to be untrue, the insurer may have the right to deny a claim or void the policy. This underscores the significance of warranties—they are not merely aspirational; they are definitive and legally binding aspects of the contract that must reflect reality.

In contrast, conditions outline the duties and responsibilities of both the insurer and the insured, but they are not necessarily guaranteed statements. Exclusions specify what is not covered by the policy, and while they may outline limitations, they do not guarantee truth in the same way warranties do. Endorsements can modify or add terms to a policy, but they also do not constitute guaranteed truths. Thus, warranties are the only aspect of a life insurance policy that carries a guaranteed truthfulness requirement.