Which of the Following Statements Is True of Insurance Policy

question 92

Multiple Choice

Which of the following statements is true of insurance policy?

• A) It is not possible to cancel an insurance policy until the date of maturity.
• B) It can be obtained even if one has no insurable interest in that property.
• C) It remains in effect even during the overdue grace period.
• D) It cannot be modified once issued.

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Definitions:

Full Warranty

A comprehensive guarantee that a product will perform as advertised and the seller will repair or replace defective items at no charge.

Limited Warranty

A warranty with certain conditions and limitations on the parts, time, type of defect, or other factors warrantied.

Warranty

An assurance, either express or implied, by one party that the other party can rely on its representations of fact; in sales, a binding promise regarding a product in the event that the product does not meet the manufacturer’s or seller’s promises.

Written Warranty

A documented guarantee provided by a manufacturer or seller, detailing the conditions under which a product can be returned, replaced, or repaired.