Looking for the answer to the question below related to Insurance?
According To The Entire Contract Provision, A Policy Must Contain
Options:
- A. Buyer’s Guide
- B. Agent’s report
- C. Outline of coverage
- D. Copy of the original application for insurance
The Correct Answer Is:
- D. Copy of the original application for insurance
Answer Explanation:
According To The Entire Contract Provision, A Policy Must Contain Copy of the original application for insurance.This is important because the application is a binding contract between the insurer and the insured. It sets forth the conditions of coverage and is the basis for determining whether a claim is covered.The purpose of this is to make sure that the insured party and the insurer both have a complete and accurate understanding of the coverage being provided. If there are any discrepancies between the application and the policy, they should be resolved before the policy is put into effect. This is to ensure that both parties have a record of what was agreed to at the time of purchase. If there are any discrepancies between the policy and the application, the contract may be voided.
When an insurance policy is issued, the contract must contain a copy of the original application for insurance. This is known as the entire contract provision and is required by law in most states.The entire contract provision ensures that the policyholder and insurer are both aware of the terms of the contract and that there is a clear understanding of what is covered.Without this provision, there would be no way to know if an insurance company had changed the terms of a policy after it was issued, which could lead to disputes and confusion. The entire contract provision protects both parties and helps to avoid misunderstandings or problems down the road. If you have any questions about your policy, be sure to ask your agent or insurer for a copy of the original application.
Conclusion
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