Simple English definitions for legal terms
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A policy of insurance is a contract between an insurer and a policyholder that outlines the terms of the insurance coverage. It can also refer to the physical document that contains the details of the contract. Here are some examples of different types of insurance policies:
These examples illustrate how a policy of insurance can provide coverage for different types of risks and losses. The policyholder pays a premium to the insurer in exchange for this coverage. If a covered loss occurs, the insurer will pay out a claim according to the terms of the policy.