General Insurance PrinciplesQuestion 185 of 716
What does the applicant offer as consideration when applying for a life insurance policy?
a.A completed medical examination report from the insurer's paramed
b.Only the applicant's signature on the completed application form
c.The binding promise to pay all future premiums for life
d.The initial premium and statements made in the application
Explanation
The applicant's consideration consists of the initial premium payment and the truthful statements made in the application. The insurer's consideration is its promise to pay benefits according to the policy.
This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
Practice all 716 questions free — no signup required.
Own the complete California Life & Health Insurance Producer Exam guide — PDF + EPUB, $19.99 →
Related questions on this topic
- An insured stops locking the car because she knows she has comprehensive auto coverage. This behavior is an example of:
- Adverse selection is BEST described as:
- All of the following are required elements of a valid contract EXCEPT:
- Which characteristic of an insurance contract means that only the insurer makes a legally enforceable promise?
- An insurance contract is described as aleatory because:
- Because an insurance policy is a contract of adhesion, California courts will interpret any ambiguity in the policy:
Last reviewed: · editorial process
PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)