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Which of the Following Statements About a Warranty in an Insurance

question 38

Multiple Choice

Which of the following statements about a warranty in an insurance contract is (are) true?
I.It is part of the insurance contract.
II.Statements made by an insurance applicant are considered warranties rather than representations.


Definitions:

Common Stockholders

Individuals or entities that own shares of common stock in a corporation, granting them voting rights and a claim on profits in the form of dividends.

Voting Rights

Rights given to shareholders to vote on company matters, such as electing the board of directors, often proportional to the number of shares owned.

Company Charter

A legal document that establishes a corporation and defines its structure and purpose.

Right to Dividends

A shareholder's entitlement to receive a portion of a company's earnings, distributed as dividends, based on the number of shares held.

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