Question

An insurance clause is a distinct article in a formal document that establishes the rules in the contract that _____________________ must adhere to.

a) The insurer
b) The policyholder
c) Both the insurer and the policyholder
d) The beneficiaries

Answer 1

An insurance clause is a distinct article in a formal document that establishes the rules in the contract that both the insurer and the policyholder must adhere to.

Step-by-step explanation:

In an insurance contract, an insurance clause is a distinct article that establishes the rules in the contract that both the insurer and the policyholder must adhere to.

For example, the insurance clause might outline the coverage limits, the conditions under which the policyholder can make a claim, and the responsibilities of both parties in the event of a loss or damage.

This clause serves to protect the interests of both the insurer and the policyholder by clearly defining their rights and obligations.