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When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?

A. Contract of adhesion
B. Acceptance
C. Consideration
D. Legal purpose

Respuesta :

jandres511

Answer:

The answer is C. Consideration.

Explanation:

In terms of insurance, consideration refers to the fact in which the insurance company gives adequate consideration in terms of coverage for losses when premiums are being paid. If a person wants to continue receiving this benefit, he or she could buy a policy as well as pay premiums.

Insurance can be considered a business and in this way, one party can get benefits from another one when there is a trade of something that has an important value. This is called paying premiums regarding the insurance world.    

ayokenny2001

The insured will be required to pay premium known as : Consideration

In a contractual agreement, there must be consideration which is given by the parties to a contract to make it enforceable.

Consideration is the premium paid by an insured to an insurance company for services offered to the insured.

The above means that for a vendor, the consideration is goods or services delivered, while a purchaser's consideration is the money paid for the goods or services.

Hence, consideration is the required premium to be paid by an insured to an insurance company on the application for insurance.

Learn more about consideration in insurance here :

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