Author Question: Which of the following statements about consideration in an insurance contract is (are) true? I. ... (Read 40 times)

mspears3 · **on:** Jul 11, 2018

Which of the following statements about consideration in an insurance contract is (are) true?

I. The insured's total consideration is submission of a completed application.
II. The insurer's consideration is the promise to do those things specified in the policy.
A) I only
B) II only
C) both I and II
D) neither I nor II

Question 2

David owns a liquor store in a high-crime area. In order to obtain a reduced insurance premium, David promised to have a burglar alarm operating at the store when the store was closed.

This agreement, which was incorporated into the insurance contract, is an example of a
A) representation.
B) binder.
C) rider.
D) warranty.