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Which will most likely result if an insurance company discovers that a policyholder has failed to tell the truth on her insurance application form?

a.The policyholder's claims will be approved anyway.
b.The policyholder's grace period will be eliminated.
c. The policy will be declared null and void.
d. The policyholder's credit rating will be lowered.

User Viceriel
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Final answer:

If an insurance company discovers that a policyholder has failed to tell the truth on her insurance application form, the most likely result is that the policy will be declared null and void.

Step-by-step explanation:

If an insurance company discovers that a policyholder has failed to tell the truth on her insurance application form, the most likely result is that the policy will be declared null and void. This means that the insurance policy will be considered invalid and the policyholder will not receive any coverage or benefits from the insurance company.

Insurance companies require policyholders to provide accurate and truthful information on their application forms. This is because the information provided is used to assess risk and determine the terms and conditions of the policy. If the policyholder withholds or misrepresents information, it can impact the insurance company's ability to accurately assess the risk and provide appropriate coverage.

Declaring the policy null and void is a common consequence when a policyholder fails to provide truthful information. It is important for policyholders to be honest and upfront when applying for insurance to avoid any legal and financial consequences.

User Aleneum
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