Which of the following BEST describes a conditional insurance contract? A contract that requires certain conditions or acts by the insured individual This means that the insurer’s promise to pay benefits depends on the occurrence of an event covered by the contract.
What is a conditional insurance contract?
3- Insurance contract is a conditional contract: A condition is a provision of a contract which limits the rights provided by the contract. Insurance contract is conditional. That is, the insurance company’s obligation to pay a claim depends on whether insured or the beneficiary has complied with all policy conditions.
Who is responsible for assembling the policy forms for insureds?
An insurance carrier is the company that is allowed to sell insurance policies and holds it.
Which of the following is an example of the insurance consideration?
An example of the insured’s consideration is a paid premium. … Insurance contracts are unilateral, meaning that only the insurer makes legally enforceable promises in the contract. Intentional withholding of material facts that would affect an insurance policy’s validity is called a(n) concealment.
What is the consideration in a contract of insurance?
In Insurance contracts the consideration is the premium that the Insured pays to the Insurer as the price of the promise that the Insurer has made that he shall indemnify the insured.
What is a conditional contract example?
A type of conditional contract is an option agreement. The option is given to a party to buy a particular property within a particular amount of time. … An option must put any interested party on notice that there is an option in place. For example, a bank which has a mortgage on a property.
How is a conditional receipt best described?
How is a conditional receipt BEST described? A receipt given to an applicant when an agent collects both the application and initial premium.
What are the elements of an insurance policy?
Every insurance policy has five parts: declarations, insuring agreements, definitions, exclusions and conditions. Many policies contain a sixth part: endorsements. Use these sections as guideposts in reviewing the policies. Examine each part to identify its key provisions and requirements.
Which type of rider will waive the premium?
A waiver of premium rider is an optional insurance policy clause that waives insurance premium payments if the policyholder becomes critically ill or disabled. To purchase a waiver of premium rider you may need to meet certain requirements for age and health.
Where are policy benefits found?
Parts of an insurance contract — In insurance, the insurance policy is a contract between the insurer located many pages earlier in one or more coverage and policyholder can determine provisions and the benefit level.(7)… Policy benefits can be found in the policy brochure or the policy wordings.
What are the 4 types of insurance?
Different types of general insurance include motor insurance, health insurance, travel insurance, and home insurance.
What are the types of insurance contract?
Types of contracts
- The major types of life insurance contracts are term, whole life, and universal life, but innumerable combinations of these basic types are sold. …
- Life insurance may also be classified, according to type of customer, as ordinary, group, industrial, and credit.
What is the main principle of insurance?
The basic principle of insurance is that an entity will choose to spend small periodic amounts of money against a possibility of a huge unexpected loss. Basically, all the policyholder pool their risks together. Any loss that they suffer will be paid out of their premiums which they pay.