This form provides boilerplate contract clauses that give further assurances and pre-closing assurances to the various parties of the contract agreement. Several different language options are included to suit individual needs and circumstances.
Insuring Clause Vs Consideration Clause
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How to fill out Negotiating And Drafting Further Assurances And Pre-Closing Assurances Provisions?
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FAQ
The consideration clause spells out exactly how much premium payments are and when they are due. The legal consideration for a life policy consists of the application and payment of the initial premium. It may also list the effective date.
A consideration clause is a provision most commonly used in insurance policies that provides information on how much the coverage costs and when to pay. Other industries can also use consideration clauses. In real estate agreements, consideration clauses outline compensation ing to the terms of the contract.
For example, a person who pays auto insurance premiums to an auto insurance company would receive consideration if they experienced a covered loss to their vehicle. Under this consideration, the auto insurer would pay for the losses.
The consideration clause spells out exactly how much premium payments are and when they are due. The legal consideration for a life policy consists of the application and payment of the initial premium. It may also list the effective date.
The insuring clause states the insurer's commitment to pay benefits. The benefit payment clause is the provision that describes how and when benefits are paid. The consideration clause describes the promises exchanged between the insured and the insurer as evidenced by the payment of premiums .