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What is the purpose of a disclosure statement in life insurance policies "To obtain important underwriting information"?

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Question: a) To explain features and benefits of a proposed policy to the consumer

b) To obtain important underwriting information from the applicant

c) To help consumers compare policy prices

d) To protect agents and insurers against lawsuit

Answer: To explain features and benefits of a proposed policy to the consumer.

A disclosure statement is a statement in an official document that spells out the terms and conditions, features, benefits, risks, and rules in a financial transaction.

An insurance is an example of a financial transaction, and a typical financial transaction has disclosure statement. In an insurance policy, the disclosure statements states all the features of the transaction.

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