U2-L4-P1

Introduction: The basic parts of an insurance contract include, the policy declaration, definitions, insuring agreement, exclusions, conditions and provisions.

Policy declaration: The policy declaration includes information concerning the insurer, insured, the policy period and a summary of the insurance coverages and limits. It also includes any applicable policy endorsements or deductibles that may apply.

Policy definitions: This section of the policy defines the common terms and key phrases used in the policy. The definition of an insured may refer to one or more persons. In personal lines property and liability contracts the definition of an insured generally includes the named insured and resident relatives of the named insured household.

Policy insuring agreement: The insuring agreement summarizes the property and liability coverages insured under the policy. Property insuring agreements cover direct damage to property from a covered peril and may include indirect losses from the loss of use of the property. Property losses are covered under two policy forms; the Named Perils Policy Form and the Special or “all risk” Policy Form. The term “all risk” is no longer in use as it was commonly misinterpreted. The “all risk” term has been replaced with the term “Special Form Policy” or an Open Perils Policy and the Insurance Services Office (ISO) commercial insurance term, Specified Causes of Loss Form.

The following question is part of this page, answer it and then click below to check for your response:

What part of an insurance policy includes information concerning the insurer, insured, the policy period and a summary of the insurance coverages and limits?