Florida Life and Health Insurance License Practice Test

What is the consideration given by an insurer in the Consideration clause of a life policy?

1. A detailed list of covered benefits.

2. Promise to pay a death benefit to a named beneficiary.

3. An annual premium payment requirement.

4. A guarantee of insurability for the policy term.

The correct answer is: Promise to pay a death benefit to a named beneficiary.

The consideration given by an insurer in the Consideration clause of a life policy is a promise to pay a death benefit to a named beneficiary. This is the main purpose of a life insurance policy and is the ultimate benefit that the policyholder is paying for. The other options may also be included in the policy, but they are not the specific consideration given by the insurer in the Consideration clause. Option A is typically found in the policy's schedule of benefits, option C is a common requirement for maintaining the policy, and option D may be an added benefit, but it is not the primary consideration given by the insurer.