02. The Insurance Contract - 2

Question 1

Q: What are the four essential sections of an insurance contract?

Answer 1

1. Declarations Page
2. Insuring Agreement
3. Conditions
4. Exclusions

Question 2

Declarations Page ( part of insurance contract )

+ 8 Sections

Answer 2

Makes the contract specific to the policyholder with atleast 8 details of the the insured and their insurer.

1. Names of both parties
2. Policy number
3. Location and description of insured item
4. Value of insured item
5. Dates of the policy (beginning and end)
6. Amount and limit of coverage
7. Deductible
8. Premium

Question 3

Definitions Page ( part of insurance contract )

Answer 3

Defines terms used to write policy (important terms for adjusters to know)

Question 4

Insuring Agreement ( part of insurance contract )

plus what it includes

Answer 4

The insuring agreement is a summary of what the insurer promises to do when a loss occurs.

1. What is covered
2. Which causes of loss are covered
3. Any services provided
4. Any exclusions to coverage
5. The maximum limit of policy coverage in dollars

Question 5

Conditions sections ( part of insurance contract )

Answer 5

Where the insurer specified any limits or qualifications the policyholder must meet.

Question 6

Exclusions list ( part of insurance contract )

Answer 6

Lists what the policy does not cover ( both causes of loss or specific items )

Question 7

Endorsements ( part of insurance contract )

Answer 7

List provisions that modify the coverage of the original contract ( can add or reduce insurance coverage )

Question 8

Certificate of Insurance

Answer 8

Official document that includes basic details of the insurance policy and constitutes proof of coverage.