Questions: What does the insuring agreement in a Life insurance contract establish?

The answer is C. An insurer's basic promise

This option is incorrect because the grace period is typically defined in a separate section of the insurance policy, not in the insuring agreement. The grace period refers to the time allowed for the policyholder to make a late payment without losing coverage.

This option is incorrect because the required reserve amount is a financial requirement for insurers to ensure they can meet future claims. It is not part of the insuring agreement but rather a regulatory requirement.

This option is correct. The insuring agreement is the core part of the life insurance contract where the insurer outlines its basic promise to pay a specified benefit upon the occurrence of the insured event, such as the death of the insured.

This option is incorrect because the obligations of the beneficiary are not typically detailed in the insuring agreement. The insuring agreement focuses on the insurer's promise to pay the benefit, while the beneficiary's obligations, if any, are usually minimal and outlined elsewhere in the policy.