Misstatements or Misrepresentations in an Application for Insurance Can Affect

question 40

True/False

Misstatements or misrepresentations in an application for insurance can affect the amount of a premium but cannot void a policy.

---

Definitions:

Government Bonds

Securities issued by a government to raise funds from the public to finance its expenditure needs.

Monetary Policy

The process by which the central bank or monetary authority of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure economic stability.

U.S. Treasury Department

A federal government department responsible for managing government revenue, issuing currency, and supervising national banks.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.