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.
The Insurer is the source of authority from which the producer must abide; and it is responsible for all acts of a producer, but only when the producer is acting within the scope of his/her authority. However, a producer may be personally liable when his/her actions exceed the authority of the agency’s contract.
Which element of a contract constitutes a definite and unqualified proposal by one party to another?
Which element of a contract constitutes a definite and unqualified proposal by one party to another? Offer-A proposal of contract terms by one party to another is an called an offer. An agreement is reached when an insurance contract is formed.
In what way are insurance policy said to be aleatory?
Life insurance policies are considered aleatory contracts, as they do not benefit the policyholder until the event itself (death) comes to pass. Only then will the policy allow the agreed amount of money or services stipulated in the aleatory contract.
Who are the parties to an insurance contract?
Here’s a look at each of them. 1) An insurance policy is a contract between the insurer and the insured. 2) The insured is the person whose life is being covered against the risk under the policy. 3) The insurer is the insurance company that provides the insurance cover.
What is the consideration that an insurer gives to the insured under an insurance contract?
What is the consideration that an insurer gives to the insured under an ins contract? Consideration is the thing of value exchanged under a contract. The insured’s consideration is the premium; in return the insurer promises to pay for certain losses if they occur.
What is the consideration given by an insurer in the consideration clause of a life policy?
Investor-Originated Life Insurance. What is the consideration given by an insurer in the Consideration clause of a life policy? Promise to pay a death benefit.
When a producer acts within the scope of his or her?
An act of an agent is the act of the principal. is responsible for all acts of its producers when a producer is acting within the scope of his/her authority. A producer may be personally liable when his/her actions exceed the authority of his/her contract. You just studied 26 terms!
The contract between the producer and insurer sets forth certain acts and duties the producer is specifically authorized to perform. This authority is express authority.
What is consideration in a contract?
Something bargained for and received by a promisor from a promisee. Common types of consideration include real or personal property, a return promise, some act, or a forbearance. Consideration or a valid substitute is required to have a contract.
What type of consideration does the proposed insured?
In an insurance policy contract, the insured’s consideration is his premium payment, and the insurer’s consideration is the promise of indemnity. Intent is not a requirement for a valid contract. Ann and her agent meet to discuss automobile insurance.
Which of the following is an example of the insured 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.