Life & Health · Chapter 3 · Contract Law
Consideration
Definition
The value each party gives. The applicant gives premium + truthful information; the insurer gives a promise to pay claims. The "binding force" of the policy.
Exam tip
No consideration (e.g., a bounced first-premium check) → the policy is void.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms