An Application for Insurance: ______

question 51

Multiple Choice

An application for insurance: ______.

• A) may be oral.
• B) generally is attached to the policy and becomes a part of the insurance contract.
• C) must be prepared by an attorney.
• D) has no binding effect on the applicant.

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Definitions:

Wages & Salaries

Payments made to employees for their labor or services, typically on an hourly or annual basis.

Interest Rates

The cost of borrowing money or the compensation for the service and risk of lending money, typically expressed as a percentage of the principal.

Present Consumption

The use of goods and services for satisfaction or needs in the current period, as opposed to saving for future consumption.

Insurable Risk

An eventuality for which both the frequency and magnitude of potential losses can be estimated with considerable accuracy. Insurance companies are willing to sell insurance against such risks.