Simple English definitions for legal terms
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An insurance policy is a contract between an insurer and a policyholder. It is a document that details the terms and conditions of the contract. The policyholder pays a premium to the insurer, and in return, the insurer agrees to provide coverage for certain risks or losses.
These examples illustrate how insurance policies provide coverage for specific risks or losses. The policyholder pays a premium to the insurer, and in return, the insurer agrees to provide coverage for those risks or losses. The terms and conditions of the policy are detailed in the contract.