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the second important clause found in every life insurance policy. As its name implies, the consideration clause deals largely. with the consideration paid by the policyowner for life insurance protection-. -the premium. identifies the fact that the policyowner must pay something of value. for the insurer's promise to pay benefits. This valuable consideration is the. premium.
exposure How much liability an insurer takes on when they write an insurance policy. insurance (insur) An arrangement where one party provides financial protection to another party for specific damages or losses. liability A situation where one party is found to be legally responsible for something.