Legal Definitions - corrected policy

A corrected policy refers to an updated version of an insurance policy that has been reissued to fix an error or omission found in the original document. This new document replaces the flawed original and accurately reflects the intended terms, conditions, or details of the insurance agreement.

Here are some examples to illustrate this concept:

• Example 1: Typographical Error in Property Address

  Imagine a homeowner purchased a new insurance policy for their house. When they received the policy documents, they noticed that their street number was incorrectly listed as "456 Oak Avenue" instead of "465 Oak Avenue." They contacted their insurance provider, who acknowledged the mistake. The insurer then issued a corrected policy with the accurate street number. This new document ensures that the insurance coverage is correctly associated with the homeowner's actual property.

• Example 2: Incorrect Coverage Limit

  A small business owner applied for a general liability insurance policy, specifically requesting a coverage limit of $2 million. However, when the initial policy arrived, it mistakenly stated a limit of $1 million. Upon reviewing the document, the business owner immediately informed the insurance company of the discrepancy. The insurer then prepared and sent a corrected policy that accurately reflected the agreed-upon $2 million coverage limit, ensuring the business had the protection it intended to purchase.

• Example 3: Omission of a Specific Endorsement

  A driver purchased an auto insurance policy and specifically requested to add "roadside assistance" coverage, which is typically included as an endorsement. After receiving their policy documents, they realized this particular endorsement was missing. They contacted their agent, who confirmed the omission was an administrative error. The insurance company subsequently issued a corrected policy that included the roadside assistance endorsement, thereby providing the full scope of coverage the driver had requested and paid for.