Life Policy ProvisionsQuestion 575 of 716
The consideration furnished by the applicant in a life insurance contract consists of the:
a.The face amount of the death benefit named in the policy itself
b.Application (the statements made) plus the initial premium
c.The insurer's promise to pay the death benefit when it is due
d.The producer's state insurance license and carrier appointment
Explanation
The applicant's consideration is the premium and the representations made in the application; the insurer's consideration is its promise to pay. A license and the death benefit are not the applicant's consideration.
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Related questions on this topic
- Electing to use policy dividends to buy paid-up additions will:
- The difference between the fixed-period and fixed-amount settlement options is that fixed-period:
- Under a life income settlement option, the size of each payment to the beneficiary depends primarily on the:
- An applicant pays the initial premium with the application and receives a conditional receipt. Coverage becomes effective:
- When an application is submitted WITHOUT the initial premium, coverage generally does not take effect until:
- The insuring clause of a life insurance policy:
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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)