Question

An applicant for an individual health policy failed to complete the application properly. Before being able to complete the application and pay the initial premium, she is confined to a hospital. This will not be covered by insurance because she has not met the conditions specified in the
a) Consideration Clause.b) Insuring Clause.c) Pre-existing Conditions Clause.d) Eligibility Clause.

Answer 1

Answer:

CONSIDERATION CLAUSE                

Explanation:

In an insurance policy, a compensation or considerations clause refers to the stipulation that defines the amount of protection and then when premiums are due.

Consideration provisions will be most widely used during insurance plan as well as the balance owed for protection is specified. Such clauses generally also describe a timetable of disbursements.

Many sectors like to use clauses related to concern. Consideration provisions govern remuneration when used in businesses such as real estate, depending on terms and conditions.