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LSDefine
Simple English definitions for legal terms
insurance policy
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A quick definition of insurance policy:
An insurance policy is a contract between you and an insurance company. It's like an agreement that says if something bad happens to you or your things, the insurance company will help you pay for it. The policy is usually written down on a piece of paper, and it explains what the insurance company will cover and how much you have to pay them. There are many different types of insurance policies, like ones for your car, your home, or your health.A more thorough explanation:
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.
- Accident policy: This type of policy provides coverage for bodily injuries sustained during the policy term.
- Homeowner's policy: This policy provides coverage for risks such as fire, water damage, burglary, and personal injury caused by the homeowner's negligence.
- Commercial general-liability policy: This policy covers most commercial risks, liabilities, and causes of loss, including situations where a business is liable to a third party for personal injury or property damage.
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.