LESSON 3: LIFE INSURANCE POLICIES, PROVISIONS, OPTIONS AND RIDERS You are already familiar with the meaning of “consideration” in the context of insurance. Yes, indeed. Money! The consideration clause specifies the exact amount and due date of premium payments.
What are the fundamental components of consideration choose two?
Consequently, there are two fundamental factors to consider: (1) Legal Sufficient (something of value in the eyes of the law) and (2) bartered trade. Both must be present to meet the contemplation criterion.
What function does consideration serve?
With few exclusions, consideration is a required part of a contract. It is the exchange of anything of legal worth in exchange for something else. It serves the aims of formalizing the desire to contract and decreasing hasty promises.