Insurance Policy Basic Definition

This glossary provides insurance terms definition and explanation commonly used in insurance business world.

Insurance policy basic definition. They provide coverage for loss from only the particular causes that are listed in the policy as covered. A provision in an insurance policy that gives the insured the right to continue the policy in force by the timely payment of premiums for a substantial period of time. Premium the amount of money an insurance company charges to provide coverage. An ho 2 policy is a basic type of homeowner s policy that provides somewhat broader coverage.

Policyholder the person who applied for pays for and is issued the insurance policy. This policy will cover you against about 16 different types of events including not only fire and lightning but also damage from theft vandalism and riots it covers damage from hail windstorms and breaking glass as well as smoke damage and damage that is caused by a car truck or airplane. A policyholder s request for reimbursement from an insurance company for a loss of property. This type of insurance usually requires that a higher.

Bodily injury liability personal injury protection property damage liability collision comprehensive and uninsured underinsured motorist. Policy period the time your policy is in force from the effective date to the expiration date. A clause in an insurance policy that indicates that the insurer will only cover the least expensive option for treatment repair or remediation. The basic and broad causes of loss forms are named perils forms.

An insurance company can only cancel an insurance policy for reasons stated in the policy and permitted under the law of the state in which the policyholder resides. It provides coverage for loss from any cause except those that are specifically excluded. Note that each type of coverage is priced separately so there is variability in. Policy a formal written contract of insurance.

The termination of a home or auto insurance policy during the policy term. Dental insurance policies providing only dental treatment benefits such as routine dental examinations preventive dental work and dental procedures needed to treat tooth decay and diseases of the teeth and jaw. Least expensive alternative treatment leat. Learn insurance industry words and phrases that can help you better understand the language used in insurance policies.

Dental only line of business providing dental only coverage. The special causes of loss form is an all risks form. Learn about basic insurance terms and definitions. We ve curated a list of advanced and.

In one policy protection for both basic hospital expense and. No insurance website could be complete without offering and index of insurance terms and definitions. Insurance coverage that extends beyond the basics to include rare events that may be of serious risk to the insured.