Arkansas Life and Health Insurance Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Arkansas Life and Health Insurance Exam. Utilize flashcards and multiple-choice questions with hints and explanations for each question. Get thoroughly ready for your certification test!

Start Multiple Choice Practice Test
Start Flash Cards

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

The _________ clause states what each party exchanges in the contract.

  1. Consideration

  2. Exclusions

  3. Insuring

  4. Waiting

The correct answer is: Consideration

The correct answer is A. Consideration. Consideration is a fundamental element of a contract that involves what each party gives and receives as part of the agreement. It is the exchange of something of value (such as money, goods, or services) between the parties entering into the contract. This clause outlines the promises made by each party and what they will receive in return, forming the basis of a binding contract. Exclusions (B), Insuring (C), and Waiting (D) are not relevant to describing what each party exchanges in a contract and are not directly related to the concept of consideration in contract law.

More Questions Like This