Rhode Island Life Insurance Practice Exam

What is the promise to pay stated benefits in a life insurance contract referred to as?

1. Underwriting clause

2. Insuring clause

3. Benefit clause

4. Coverage clause

The correct answer is: Insuring clause

The promise to pay stated benefits in a life insurance contract is referred to as the insuring clause. This clause is a critical component of the life insurance policy, as it explicitly outlines the insurer's commitment to provide a death benefit to the beneficiary upon the insured's death, provided all conditions of the policy are met. The insuring clause typically includes essential details such as the amount of coverage and the situations under which the benefit will be paid. This provides clarity and assurance to the policyholder and beneficiaries regarding the financial protection the insurance policy offers. Understanding the insuring clause is crucial, as it forms the basis of the insurance agreement and sets the expectations of both the insurer and the insured regarding the coverage provided.