Final answer:
The application for health insurance and the premium payment that Thomas made are based on the Consideration clause, which is the foundation of the insurance exchange agreement between the insurer and the insured.
Step-by-step explanation:
When Thomas submitted an application for health insurance with the full first premium and was issued a conditional receipt, the application and premium payment were based on the Consideration clause. The Consideration clause in an insurance contract is a fundamental provision outlining what the insurer receives (the premium) and what the insured receives (the promise of coverage). Essentially, this clause confirms that a contract exists due to the exchange of consideration between both parties.
The provision of the contract that the application and premium payment are based on in this scenario is the Consideration clause. The Consideration clause states that an insurance contract is based on a mutual exchange of value between the insured person and the insurance company. In this case, Thomas submitted an application and paid the full premium, which meets the requirement of consideration.