In a life insurance contract, what does the applicant provide as their consideration?

a.The insurer's promise to pay the death benefit to the beneficiary
b.The premium payment together with the statements made on the application
c.Only the signature the applicant places on the completed application form
d.The producer's recommendation that the applicant buy the policy

Explicación

Consideration is the value each party gives. The applicant's consideration is the premium paid plus the truthful statements (representations) made in the application. The insurer's consideration is its promise to pay benefits if a covered loss occurs. A signature alone is not consideration, and the producer's recommendation is not something of value exchanged in the contract. Every valid contract requires consideration from both sides.

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Revisado por John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verificar)
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