?
Which is the ‘consideration’ from the insurer in an insurance contract?
Answer & Solution
Correct Answer:
Option
B
Promise to indemnify is the ‘consideration’ from the insurer in an insurance contract. In every contract of guarantee there is an implied promise by the principal debtor to indemnify the surety, and the surety is entitled to recover from the principal debtor whatever sum he has rightfully paid under the guarantee, but no sums which he has paid wrongfully.
Join the Discussion
Login to post a comment or share your explanation.
Login