Which statement about the insuring clause is true?

• A. It outlines the premium payment schedule
• B. It identifies the insured and the insurer
• C. It lists the policy exclusions
• D. It details policy dividends

Answer: (B)

The insuring clause is where the insurer’s promise is stated and who is covered is named. It identifies the insurer and the insured, establishing who will pay and who is protected under the contract. In a life insurance policy, this clause typically says the insurer will pay the designated amount to the beneficiary upon the insured’s death (or for other covered events in some policies). This is distinct from premium provisions (which explain payment timing and amounts), exclusions (which list what isn’t covered), and dividends (which relate to participating policies and profit sharing). So, the true statement is that the insuring clause identifies the insured and the insurer.