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Demo INS013FL40 ACA 3-20, 5-30 & 6-20 : Liability Insurance Terms and Concepts: Liability Concept - Insuring Agreement | OLT

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Liability Insurance Terms and Concepts

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Attempt: 1

Liability Concept

Liability Concept - Insuring Agreement

Insurance policies have an insuring agreement that begins with the statement, “the insurer agrees to pay on behalf of the insured all sums the insured becomes legally obligated to pay as damages…” This is referred to as a third party claim.

The insuring agreement also defines the covered perils and the exclusions that narrow the coverage of these perils.

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