Which of the Following Is NOT a Material Fact Requiring

question 21

Multiple Choice

Which of the following is NOT a material fact requiring disclosure by an applicant to an insurer?

• A)The health of the applicant.
• B)Whether the applicant has a criminal record.
• C)Whether the applicant has had financial problems in the past.
• D)A fact that reduces the risk.

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Definitions:

Financial Instrument

A tool representing a monetary contract between parties that can be traded, such as stocks, bonds, or derivatives.

Substance Over Form

The concept that transactions and their effects should be recorded and reported in a way that reflects their economic reality rather than merely their legal form.

Legal Form

The specific legal structure of an entity or agreement, which determines its legal responsibilities, rights, and the regulatory framework it operates within.

Net Present Value

A calculation used to assess the profitability of an investment by summing the present values of its expected cash flows minus the initial investment cost.