Health Insurance Mastery Practice Exam

Which provision indicates that the application is included in the contract?

1. Waiver of premium clause

2. Entire contract clause

3. Grace period clause

4. Renewal clause

The correct answer is: Entire contract clause

The provision that indicates the application is included in the contract is the entire contract clause. This clause ensures that the insurance policy, along with any attached endorsements or riders, constitutes the complete and exclusive agreement between the insurer and the insured. It specifically states that no representations or statements made during the application process can alter or modify the terms of the contract unless explicitly included within the policy documentation. This means that the application itself, which contains important information about the insured, is effectively part of the contract. This clause protects both parties by ensuring that all terms and conditions are transparent and agreed upon in their entirety, thus preventing misunderstandings that could arise from verbal agreements or negotiations that are not documented. In contrast, a waiver of premium clause addresses the potential to suspend premium payments under specific circumstances, while a grace period clause provides a timeframe for premium payments without penalty. A renewal clause outlines the conditions under which a policy may be renewed. None of these options directly reference or convey the inclusion of the application as part of the contractual agreement.