General Insurance PrinciplesQuestion 185 of 315
What does the applicant offer as consideration when applying for a life insurance policy?
a.The initial premium and statements made in the application
b.Only the signature on the application
c.The promise to pay future premiums for life
d.A medical examination report
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.
Practice all 315 questions free — no signup required.
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 Editorial Team · Verified against California Life & Health Insurance License Exam · How we review