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Commerce · Q249

Insurance

Graduate and Post Graduate · Commerce · question 249

Q249

What is the ‘consideration’ from the insured in an insurance contract?

A.
Premium
Answer
B.
Proposal
C.
Understanding
D.
Acceptance

Answer: Option A

Solution

Answer: Option A
Solution:
The premium is the consideration from the insured, and the promise to indemnify, is the consideration from the insurers.