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uranmaximum [27]
3 years ago
7

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

f the following?
A. Contract of adhesion
B. Acceptance
C. Consideration
D. Legal purpose
Social Studies
1 answer:
Doss [256]3 years ago
6 0

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.    

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