Correct image in the Insuring Agreement

Aug 6th, 2022
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Insuring agreement. This provides information on the policys coverages. Conditions state the legal obligations and duties of the parties to the contract.
An insuring agreement is that portion of the insurance policy in which the insurer promises to make payment to or on behalf of the insured.
This is a summary of the major promises of the insurance company and states what is covered. In the Insuring Agreement, the insurer agrees to do certain things such as paying losses for covered perils, providing certain services, or agreeing to defend the insured in a liability lawsuit.
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.
Insuring Agreement The portion of an insurance contract that describes what is covered. The insuring agreement usually states the perils insured against, the person(s) and/or property covered, the property locations, and the period of the contract.
There are four necessary elements to comprise a legally binding contract: (1) Offer and acceptance, (2) consideration, (3) legal purpose, and (4) competent parties.
3. Exclusions, limitations and conditions. The insuring agreement provides a broad overview of the policys coverage. Separate sections for exclusions, limitations and conditions offer a more detailed look at whats covered and whats not.
The correct answer was - B: perils insured against. Explanation: The insuring agreement is the section of an insurance contract containing the obligation of the insurer to pay covered claims, subject to specified conditions and exclusions.

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