Question

the proposed insured makes the premium payment on a new insurance policy. if the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. this is an example of what kind of contract?

Answer 1

Answer:

Conditional Contract

Explanation:

Conditional contract is a contract that can only be executed if another agreement is signed or another particular obligation is met. It is sometimes known as a theoretical contract.

This is an agreement that requires specific provisions to be met before the entities are bound to satisfy the terms of contract. Until the requirements specified are met, the contract is considered "conditional."

A conditional agreement is legally enforceable, but until it is unconditional, the obligations under it are suspended.