Georgia Was Supposed to Pay Her Premium by the 15^th

question 86

Multiple Choice

Georgia was supposed to pay her premium by the 15^th of the month.Which of the following provisions allows her to keep her coverage if she is a couple of weeks late with paying her premium?

• A) Incontestability clause
• B) Misstatement of age provision
• C) Naming a beneficiary
• D) Policy reinstatement
• E) The grace period

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Definitions:

Sufficient Consideration

A necessary element in contract law where something of value is exchanged between parties to form a valid contract.

Illusory Promises

Statements or promises that appear to assure performance or commitment but, due to vague or conditional terms, do not actually bind the promisor to any action.

Forbearance

A temporary postponement of mortgage payments granted by a lender or creditor in lieu of forcing the property into foreclosure, allowing the borrower time to catch up on payments.

Breach of Contract

A violation of the terms or conditions as stated in a contract, which may result in legal action or penalties against the party at fault.