Contractual agreements between the insured and the insurer make up insurance policies.
The following details will be included in the contract:
What Is an Insurance Policy?
Insurance policies are contractual agreements between the insurer and the insured.
The contract will detail such information as:
What is insured
The cost of the insurance
The conditions under which a claim may be made.
The terms of payment if the claim is honored
Most insurance policies have deductibles, the amount the insured must pay toward a claim before the insurance company pays.
Usually, the higher the deductible, the lower the premium or cost of the insurance.
Premiums are commonly paid annually, quarterly, or monthly. Policies also state the terms of the coverage and when it needs to be renewed.
What is covered by the insurance, how much it costs, the conditions under which a claim can be filed, and the terms of payment if the claim is accepted.
Deductibles are the amount the insured must pay toward a claim before the insurance company pays. Generally, the higher the deductible, the lower the charge or cost of the protection.
Expenses are generally paid yearly, quarterly, or month to month. In addition, policies specify the terms of the coverage and the due date for renewal.2
