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Exam IIA-CFSA topic 3 question 5 discussion

Actual exam question from IIA's IIA-CFSA
Question #: 5
Topic #: 3
[All IIA-CFSA Questions]

"A valid contract involves each party giving something of value. This exchange of value, or consideration, may take the form of money, action, or promise. For insurance contracts, the insureds consideration is the payment or premiums and a promise to fulfill the conditions of the contracts, and the insurers consideration is the promise to pay after a loss occurs." This is related to an element in an insurance policy contract. It is known as:

  • A. Agreement
  • B. Consideration
  • C. Competent parties
  • D. Legal purpose
Show Suggested Answer Hide Answer
Suggested Answer: B 🗳️

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