Although a standard life insurance policy does not exist, certain provisions may be required by law. In addition, some optional provisions or modifications may need to be added to the basic policy. Which of the optional provisions do you think should be considered essential by the insurance buyer?

Question

Business

Randall Ho

24 October, 07:01

Although a standard life insurance policy does not exist, certain provisions may be required by law. In addition, some optional provisions or modifications may need to be added to the basic policy. Which of the optional provisions do you think should be considered essential by the insurance buyer?

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Answers (1)

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Lydia Thompson · Answer 1

The optional provisions I think should be considered essential by the insurance buyer is the clause, also referred to as the Entire Agreement Clause, is one of the most important and common provisions in a standard contract. It states that the entire agreement between the two parties is laid out within the written contract.

Explanation:

What do you mean by provisions?

Definition: A provision is an amount set aside for the probable, but uncertain, economic obligations of an enterprise. A provision is an amount that you put in aside in your accounts to cover a future liability. When accounting, provisions are recognized on the balance sheet and then expensed on the income statement.

However, General contract provisions are requirements including standard conditions in contracts like terms of payment, terms of delivery, and recommended measures against contract violation. Parties usually add boilerplate conditions to their contracts for the following reasons: For increased efficiency.