Chapter 5: Individual Life Insurance Contract- Provisions and Options

The provision which states that both the policy and a copy of the application form the contract between the policyowner and the insurer is called the

Entire contract

What is an entire contract?

The entire contract includes the policy, copy of application, and any riders or amendments

According to the entire contract provision, what document must be made part of the insurance policy?

Copy of the original application

If the policyowner, the insured, and the beneficiary under a life insurance policy are three different people, who has the ownership rights?

Policyowner \

What does the consideration clause state?

It states that the value offered by the insured is the premium and statements made in the application, so it will include the information about the amount and frequency of premium payments.

Which provision of a life insurance policy states insurer's duty to pay benefits upon the death of the insured, and to who the benefits will be paid?

Insuring clause

Which of the following information will be stated in the consideration clause of life insurance policy?

The amount of the premium payment

An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called...

Consideration

Which of the following policy components contains the company's promise to pay?

Insuring clause