A trade of something of value, which becomes the basis of a contract. In the case of insurance, the consideration is the premium paid by the insured and the future payout of claims by the insurance company.
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Consideration consists of some right, interest, profit or benefit accruing to the one party or some forbearance, detriment, loss or responsibility given, suffered or undertaken by other. In the case of Insurance contracts the consideration moving from the insured to the Insurer is the premium and the consideration moving from the Insurer to the insured is the promise to indemnify. In Insurance the consideration may be statements made on the application and payment of premium.
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MEDICAL,USA: In contracts, anything of value given by one individual to another to induce the other person to enter into the contract.
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US: One of the elements for a binding contract. Consideration is acceptance by the insurance company of the payment of the premium and the statement made by the prospective policyholder in the application.