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Which of the following is NOT part of an insurance contract?

A) Policy
B) Application
C) Riders
D) Certificate of Authority

User Nfys
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1 Answer

3 votes

Final answer:

A Certificate of Authority is not part of an insurance contract but is a license for an insurance company to operate legally. An insurance contract includes a premium, risk group, and possibly warranties or service contracts.

Step-by-step explanation:

A Certificate of Authority is not part of an insurance contract; it is rather a document that insurance companies obtain from the government to legally sell insurance within a particular state or jurisdiction. An insurance contract typically includes components such as the premium, which is the payment made to an insurance company, and it addresses a risk group, a collection of individuals or entities that share a similar risk profile.

Additionally, insurance contracts can include warranties or service contracts; a warranty is a promise by the insurer to fix or replace the insured item, while a service contract involves the buyer paying extra for the seller to fix specified issues for a predetermined period.

User Ansal Ali
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