Question 3018 of 287 · Texas Life, Accident and Health Agent Exam

Under the doctrine of utmost good faith, an applicant for insurance must

Exactly one answer is correct.

Adisclose all material facts that the insurer needs to evaluate the risk
Bdisclose only the facts the agent asks about on a verbal basis, after a review by the home office
Cprove that no health conditions exist before the application
Dwaive the right to cancel in the first year

Show solution

Correct answer to question 3018

A: disclose all material facts that the insurer needs to evaluate the risk

Explanation

Insurance contracts require honest and complete disclosure from both parties. Hidden material facts may give the insurer the right to rescind.