The ________ Clause identifies the parties to the contract and the perils it covers.

• A. Insuring
• B. Beneficiary
• C. Material
• D. Warranty

Answer: (A)

The insuring clause is the part of a life insurance contract that states who is covered and what risk the policy covers. It names the insurer and the insured and specifies the event that will trigger payment (in life insurance, typically the death of the insured) and the amount of the death benefit. This is the fundamental promise of the policy—the coverage itself. The other clauses serve different roles: the beneficiary clause designates who receives the proceeds, a material clause relates to information deemed essential to form the contract, and a warranty is a statement promised to be true and relied upon. So the clause that identifies both parties and the peril covered is the insuring clause.