Florida Life and Health Insurance License Practice Test

Which of the following clauses details the conditions that an applicant did not meet if they have not completed all medical history questions nor paid the initial premium?

1. Entire Contract Clause

2. Incontestability Clause

3. Consideration Clause

4. Free-Look Period

The correct answer is: Consideration Clause

The Consideration Clause typically outlines the requirements and responsibilities of both parties involved in an insurance contract. In this case, it would specify the conditions that an applicant has not met if they have not completed all medical history questions and paid the initial premium. Option A, the Entire Contract Clause, refers to the completeness of the insurance contract and would not specifically address the applicant's circumstances. Option B, the Incontestability Clause, pertains to the insurability of policy provisions and their validity after a certain amount of time has passed. It would not address an applicant's incomplete requirements. Option D, the Free-Look Period, allows an applicant to cancel their policy within a certain timeframe, but does not relate to their completion of medical history questions or payment of the initial premium. Therefore, option C is the most accurate answer.