Florida Life and Health Insurance License Practice Test

What is the agreement called in a life insurance contract that specifies a sum of money will be paid to a designated person upon the insured's death?

1. Beneficiary clause

2. Insuring agreement

3. Premium agreement

4. Death benefit provision

The correct answer is: Insuring agreement

In a life insurance contract, the insuring agreement is the section that outlines the specific terms and conditions of the policy, including how much coverage is being provided and what events will trigger the payment of funds from the insurance company. The beneficiary clause (A) is a separate section that identifies the designated person who will receive the payout. The premium agreement (C) is also a separate section that outlines how much the policyholder must pay for the coverage. The death benefit provision (D) is a separate clause that dictates when and how much money will be paid out to the designated beneficiary. Therefore, while these options may be related to a life insurance contract, they do not directly refer to the specific agreement that specifies the payout upon the insured's death.