Under 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 is the insuring clause of a life insurance policy?

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 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.

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What’s an insuring clause?

An insurance clause is a contractual provision that establishes what insurance one or more parties must procure in connection with an agreement.

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.

What does the insuring agreement 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.

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.

What is the Incontestability clause in life insurance?

An incontestability clause in most life insurance policies prevents the provider from voiding coverage due to a misstatement by the insured after a specific amount of time has passed.

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.

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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.

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.

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 the name of a clause that is included in a policy?

Basics of an Insuring Clause Insurers take on a certain amount of risk when providing an insurance policy, and the risk the company assumes is stipulated in an insuring clause. These clauses are usually included in liability insurance policies and property insurance policies.

What information is contained in the insuring agreement of an insurance policy?

Insuring agreement: This section summarizes the insurer’s agreement to pay covered claims. For a property policy, it will state the property covered and types of perils, or causes of loss, the policy covers. In a liability policy, the insuring agreement describes the types of activities covered.

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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