FAQ: Under A Life Insurance Policy, What Does The Insuring Clause State?

The insuring clause states the very purpose of the life policy; it outlines the conditions under which the policy will pay. If the insured dies, the insurer promises to pay the beneficiary the death benefit as laid out in the policy.

What does the insuring clause State?

In insurance: Liability insurance. One is the insuring clause, in which the insurer agrees to pay on behalf of the insured all sums that the insured shall become legally obligated to pay as damages because of bodily injury, sickness or disease, wrongful death, or injury to another person’s property.

What does the insuring clause in a life insurance contract establish?

The insuring agreement in a Life insurance contract establishes the basic promise of the insurance company. The insuring clause or provision sets forth the company’s basic promise to pay benefits upon the insured’s death.

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What is the insuring clause quizlet?

The insuring agreement or insuring clause states that the insurer agrees to provide life insurance protection for the named insured which will be paid to a designated beneficiary when proof of death is received by the insurer.

Where is the insuring clause found on the policy?

The insuring clause is an integral part of any insurance contract and one that all insureds should pay close attention to. The insuring clause is the section of an insurance policy that outlines the risks assumed by the insurer.

Which clause is the important clause of life insurance policy?

The revival clause acts as a win-win situation for the insurance company and the policyholder. If the life insurance policy lapses due to the non-payment of the premium amount, the revival clause allows the reinstatement of the policy.

Which of the following does the insuring clause specify?

A list of available doctors – The Insuring Clause lists the insured, the insurance company, what kind of losses are covered, and for how much the losses would be compensated.

What is in an insuring agreement?

An insuring agreement is the part of an insurance contract in which the insurance company explains exactly which risks it will give insurance coverage for in exchange for premium payments at a certain amount and interval. The declaration normally appears on the first page of the contract.

What is an insuring provision?

Insuring clauses are used to prevent a profit from a loss that is insured, which is required by the indemnity principle. In simpler terms, these provisions describe the liability of an insurer and outline how much coverage they are required to provide.

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What is the purpose of the facility of payment clause quizlet?

What is the purpose of the facility of payment clause? The Facility of Payment Clause allows the Insurer to pay to a relative or anyone it deems entitled to the benefits in the absence of a designated beneficiary.

What is the purpose for having an accelerated death benefit on a life insurance policy quizlet?

What is the purpose for having an accelerated death benefit on a life insurance policy? An accelerated death benefit allows for cash advances to be paid against the death benefit if the insured becomes terminally ill.

What form is group life insurance written on?

Term insurance is the most common form of group life insurance. Group term life is typically provided in the form of yearly renewable term insurance. When group term insurance is provided through your employer, the employer usually pays for most (and in some cases all) of the premiums.

What is the benefit of payment clause?

facility of payment clause. A provision found in group life and industrial insurance policies that allows the insurer to pay benefits to persons or parties other than the insured or a beneficiary, under certain specified conditions.

What is the benefit clause?

Coordination-of-benefits clause is a provision in the insurance contract which provides that the total sum paid for medical and hospital care will not exceed the benefits receivable from all combined sources of insurance.

Which of the following is true of the insuring agreement?

Which of the following is true of the Insuring Agreement? The promise to indemnify an insured for a covered cause of loss – The insuring agreement is the company’s commitment (promise) of protection to the insured. It specifies the types of property covered, and the perils insured against.

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