Connect with us
Personal Finance

Which provision includes the insurance company’s promise to pay the claim? |



The insurance company’s promise to pay the claim includes both the cover for a financial loss and also any medical expenses related to that loss.

The “in a life insurance contract, an insurance company’s promise to pay stated benefits is called the” provision. It is typically found in a life insurance policy and is also known as the death benefit.

Which provision includes the insurance company's promise to pay the claim? |

The clauses of the insurance policy that define the policy owner’s and insurer’s rights and duties under the insurance contract. The clause that provides the life insurance company’s fundamental pledge to pay a specific quantity of money to a beneficiary upon the insured’s death.

In light of this, which of the following policy components includes the company’s payment promise?

Clause of insurance. The company’s pledge to pay is included in the insuring clause.

Second, what provision explains the various components of a life insurance policy? The sections of the life insurance contract are described in this clause. The policy, riders (or endorsements), modifications, and a copy of the application make up the whole contract. In the absence of fraud, all assertions stated in the application are understood to be representations rather than warranties.

Following that, which provision specifies that the policyholder must pay something of value in exchange for the insurer’s pledge to provide benefits?

clause of consideration

What is the clause in the insurance policy that qualifies it for payment in the case of a loss?

Loss Payable Clause — an insurance clause that authorizes payment to a person or entity having an insurable interest in the covered property other than the named insured, or, in certain situations, jointly to the insured and the other person or entity, in the event of a loss.

Answers to Related Questions

What are the advantages of a Nonforfeiture option with an extended term?

When the policy owner selects the nonforfeiture extended term option, the cash value may be used to acquire a term insurance policy with a death benefit equivalent to the original whole-life policy. The policy’s cost is determined by the insured’s current age.

For the return of premium rider, what form of insurance would be used?

The premium rider has returned. If the insured lives longer than the policy’s term, the premiums paid are refunded. For example, if a $50-per-month term life insurance is acquired and the insured lives longer than the policy’s term, the policyholder might get up to $6000 in premium back under this rider.

What is the clause of consideration of a life insurance policy?

The clause of consideration spells out exactly how much premium payments are and when they are due. The legal consideration for a life policy consists of the application and payment of the initial premium. It may also list the effective date.

What is the legal importance of an insurance applicant’s material concealment?

Definition: The act of concealing or failing to disclose any pertinent facts to the insurer is known as concealment. An applicant conducts a fraudulent act, either knowingly or accidentally, that causes the insurer to lose money.

What is the meaning of an insurance clause?

The term “insuring clause” has a legal meaning.

: a provision in an insurance policy that specifies the risk taken on by the insurer or the limit of coverage provided.

What is the grace period for insurance with variable-amount and-frequency premiums?

61 days

What are the four different kinds of insurance?

When it comes to your financial future, life insurance, health insurance, disability insurance, and vehicle insurance are four of the most important insurance products to consider.

What is given throughout the policy delivery process?

Delivering the insurance to the applicant and collecting any overdue premiums is what policy delivery entails. In most cases, policies are presented in person by an agent, however insurance firms may allow delivery via registered mail or courier. The following steps are usually included in the delivery process: delivering the policy.

Who has the authority to make modifications to an insurance policy?

The individual who chooses who will be the beneficiaries of a life insurance policy’s death claim is the policy’s owner. The only person who may change beneficiaries (as long as they are not irreversible beneficiaries) is the owner, and approval from the old or new beneficiaries is not required to make the change.

What is the definition of a valuable policy?

A valued policy is one in which the amount payable for a claim is decided upon at the time the policy is issued and is unrelated to the actual loss value. When a defined loss occurs, the insurer pays a fixed amount of money to or on behalf of the insured under a valued policy.

What are the policy constraints?

Definition. Policy Conditions — the portion of an insurance policy that outlines the insured’s and insurer’s general obligations in terms of loss reporting and settlement, property assessment, other insurance, subrogation rights, and cancellation and nonrenewal.

On a car policy, what is a loss payee?

The person to whom a loss claim is to be paid is known as the loss payee. A loss payee may refer to a variety of parties; in the insurance sector, the loss payee is the insured or the person entitled to payment. In the case of a loss, the insured may anticipate payment from the insurance company.

Continue Reading