QuestionMay 22, 2025

What is consideration on the part of the insured in an insurance contract? A. Transferring policy rights to another person B. The submission of notice of claim C. The payment of premiums and representations made in the application D. Warranties made in the application

What is consideration on the part of the insured in an insurance contract? A. Transferring policy rights to another person B. The submission of notice of claim C. The payment of premiums and representations made in the application D. Warranties made in the application
What is consideration on the part of the insured in an insurance contract?
A. Transferring policy rights to another person
B. The submission of notice of claim
C. The payment of premiums and representations made in the application
D. Warranties made in the application

Solution
4.5(190 votes)

Answer

C. The payment of premiums and representations made in the application Explanation 1. Identify the consideration in an insurance contract Consideration in an insurance contract refers to what each party gives up to form the contract. For the insured, this typically involves financial obligations and truthful representations. 2. Determine the correct option The payment of premiums and representations made in the application are the primary considerations from the insured's side.

Explanation

1. Identify the consideration in an insurance contract<br /> Consideration in an insurance contract refers to what each party gives up to form the contract. For the insured, this typically involves financial obligations and truthful representations.<br /><br />2. Determine the correct option<br /> The payment of premiums and representations made in the application are the primary considerations from the insured's side.
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