Minnesota Life Insurance License Practice Exam

In addition to the actual policy, what must an entire contract include?

1. Conditional receipt

2. Policy rider

3. Provisions

4. The application

The correct answer is: The application

The entire contract in a life insurance policy is defined not only by the actual policy document itself but also includes the application submitted by the insured. This requirement ensures that all elements that make up the agreement between the insurer and the insured are documented and recognized legally. The application provides critical information about the insured’s health, lifestyle, and other factors that influenced underwriting decisions. Therefore, when a dispute arises, both the policy and the application are considered as part of the entire contract. Including the application as part of the entire contract also protects both the insurer and the insured by establishing clear expectations and obligations. If any discrepancies occur between the application and the policy terms, the application will still hold significance in interpreting the contract. While other components, like policy riders or conditional receipts, may be important to the specifics of the contract, they do not constitute the entirety of the contract itself in the way that the application does. Provisions are typically included within the policy but are not a separate document making up the entire contract. Thus, the application is essential for defining the complete agreement between both parties.