Representations are written or oral statements made by the applicant that are:

Representations are statements made by an applicant for insurance that convey information to the insurer. These statements can be either written or oral and are considered a critical part of the insurance application process.

The correct answer highlights that representations are considered true to the best of the applicant's knowledge. This means that when an applicant provides information, they are doing so with the intention of being honest and accurate. Insurers rely on these representations to assess the risk associated with insuring the applicant and determining appropriate terms and premiums for the insurance policy.

By understanding that representations are regarded as true to the best of the applicant's knowledge, it becomes clearer that there is an emphasis on the honesty of the applicant rather than a requirement for absolute accuracy or guarantee. This allows for some leeway in cases where the applicant may inadvertently provide incorrect information, provided they did not intentionally misrepresent facts.

The other choices address concepts that misinterpret the nature of representations. For instance, stating that representations are guaranteed to be true overlooks the inherent understanding that they are based on the applicant's belief and knowledge at the time of application.