Insurance Policy Contract

An Insurance Policy Contract is a risk management contract that provides protection against a contingency or an unpredictable loss.

• Context:
  • It can (typically) have a Insurance Policy Premium.
  • It can (typically) be between an Insurer and an Insurance Buyer.
  • It can (often) involve an Annuity Payment Structure.
  • It can range from being Personal Insurance to being a Business Insurance.
  • It can range from being a Proposed Insurance Policy Contract to being an Active Insurance Policy Contract to being an Expired Insurance Policy Contract.
  • …
• Example(s):
  • Health Insurance, Dental Insurance, ...;
  • Life Insurance, Death-related Expenses Insurance;
  • Workers Comp. Insurance;
  • Municipal Bond Insurance;
  • Liability Insurance;
  • …
• Counter-Example(s):
  • a Stock Short.
• See: Insurer, Insurance Company, Insurance Carrier.

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References

2021

• (Wikipedia, 2021) ⇒ https://en.wikipedia.org/wiki/Insurance_policy Retrieved:2021-4-26.
  • In insurance, the insurance policy is a contract (generally a standard form contract) between the insurer and the policyholder, which determines the claims which the insurer is legally required to pay. In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy language.

    Insurance contracts are designed to meet specific needs and thus have many features not found in many other types of contracts. Since insurance policies are standard forms, they feature boilerplate language which is similar across a wide variety of different types of insurance policies.

    The insurance policy is generally an integrated contract, meaning that it includes all forms associated with the agreement between the insured and insurer. In some cases, however, supplementary writings such as letters sent after the final agreement can make the insurance policy a non-integrated contract. One insurance textbook states that generally "courts consider all prior negotiations or agreements ... every contractual term in the policy at the time of delivery, as well as those written afterward as policy riders and endorsements ... with both parties' consent, are part of the written policy". The textbook also states that the policy must refer to all papers which are part of the policy. Oral agreements are subject to the parol evidence rule, and may not be considered part of the policy if the contract appears to be whole. Advertising materials and circulars are typically not part of a policy. Oral contracts pending the issuance of a written policy can occur.

2021

• (Wikipedia, 2021) ⇒ https://en.wikipedia.org/wiki/insurance Retrieved:2021-3-19.
  • Insurance is a means of protection from financial loss. ...

    ... The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insurer will compensate the insured. The amount of money charged by the insurer to the policyholder for the coverage set forth in the insurance policy is called the premium. If the insured experiences a loss which is potentially covered by the insurance policy, the insured submits a claim to the insurer for processing by a claims adjuster. The insurer may hedge its own risk by taking out reinsurance, whereby another insurance company agrees to carry some of the risks, especially if the primary insurer deems the risk too large for it to carry.

2020

• https://www.investopedia.com/terms/l/loss-cost.asp
  • QUOTE: ... Actual loss associated with a policy can only be known with complete certainty after the policy period expires. …

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