Completing the Application, Underwriting, Delivering Policies, Contract Law
In a life insurance contract, which elements most directly represent the consideration exchanged by the parties?
Answer and explanation
Answer: B. The applicant supplies the premium and application representations, while the insurer supplies its contractual promise of coverage according to the policy. This exchange supplies consideration.Source: Interstate Insurance Product Regulation Commission — Individual Life Insurance Application Standards — § 3.K. Agreements (1)(a)–(d); first premium and policy issuance
More completing the application, underwriting, delivering policies, contract law questions
- Which of the following facts most directly establishes an individual's legal capacity to enter into a life insurance contract?
- Which statement best explains why a life insurance policy is legally considered a conditional contract?
- Which statement correctly separates the aleatory character of a life policy from its conditional character?
- Who must sign a life insurance application when an adult purchases insurance on their own life?
- Why does the law require a life insurance contract to have a legal purpose?
- Why is a life insurance contract void if issued to a policyowner who has no insurable interest in the insured?
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