What term describes statements made by the applicant on the insurance application that are believed to be true but are not guaranteed to be true?

The correct term to describe statements made by the applicant on the insurance application that are believed to be true but are not guaranteed to be true is "representations." In the context of insurance, representations are essentially the answers provided by the applicant which they genuinely believe to be accurate. These statements play a crucial role in the underwriting process, as insurers rely on this information to assess risk and determine the terms of coverage.

While warranties refer to absolute guarantees about statements or facts, and disclosures are typically about revealing information that must be shared, representations specifically acknowledge the subjective belief of the applicant regarding the truth of their statements. Assertions, on the other hand, refer to claims made without providing proof or evidence, so they do not apply in this context of insurance applications. Understanding that representations are based on the applicant's belief underscores their importance in the insurance application process, as they form the basis upon which insurers evaluate and decide on policy issuance.