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Which of the following would be an example of Execution of a contract?

1) receiving premiums
2) giving an insurance quote
3) signing a binding receipt
4) talking to a client about their insurance needs

1 Answer

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Final answer:

Receiving premiums is an example of the execution of an insurance contract because it activates the policy coverage when the payment is made to the insurance company. The correct option is 1) receiving premiums

Step-by-step explanation:

The execution of a contract in the context of insurance would most closely relate to the moment when the agreement becomes operative. Among the options provided, receiving premiums is an example of the execution of an insurance contract. When clients pay their insurance premiums, they are essentially activating their coverage, as this is the payment made to the insurance company in exchange for the risk coverage stipulated in the policy.

Signing a binding receipt also could denote the execution of a contract if it signifies formal acceptance of the policy terms. However, giving an insurance quote or talking to a client about their insurance needs are both preliminary steps and do not represent the execution of a contract. The correct option is 1) receiving premiums

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