Business, Legal & Accounting Glossary
An insurance policy is a contract between an insurer and the insured that requires the insured to pay a premium to the insurer in exchange for a benefit to be paid in the event of a loss.
A contract of insurance, describing the term, coverage, premiums and deductibles. also called policy.
An insurance policy is essentially a contract between the insurer and the insured.
The primary purpose of any insurance policy is to reduce financial losses resulting from various accidents or death by redistributing the risk among large numbers of people, also known as risk pooling. Specifically, the insurer agrees to pay the insured a specified amount in the event that the insured sustains a loss, as per the insurance policy agreement. In return, the insured is required to make premium payments in order to maintain the insurance policy. A given insurance policy may also include beneficiaries. An insurance policy is applicable to any form of indemnity, including life, health, casualty, auto, property, and etc. Insurers may offer insurance policy solutions to any individual able to pay or may contract with companies to offer special rates for group insurance.
death benefit
accidental death benefit
cash value
cash withdrawal
coinsurance
cost-of-living rider
disability insurance
executive indemnity insurance
face amount
guaranteed insurability
hidden load
incontestability clause
indemnity
issue date
master policy
mortgage life insurance
municipal bond insurance
named-peril coverage
participating insurance
policy limit
qualification period
underinsured motorist coverage
uninsured motorist coverage
underwrite
waiver of premium
accelerated benefits
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This glossary post was last updated: 5th November, 2021 | 0 Views.