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Simple English definitions for legal terms
standard policy
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A quick definition of standard policy:
A standard policy is a contract between an insurance company and a policyholder that outlines the terms of the insurance coverage. It can be a document that details the agreement or the agreement itself. There are different types of policies, such as accident policies that cover bodily injuries resulting from accidents, and homeowner's policies that cover various risks, including fire, water damage, and burglary. Insurance companies use a process called insurance rating to determine the policy premium, which is the amount the policyholder pays for the coverage.
A more thorough explanation:
A standard policy is a contract of insurance that outlines the terms and conditions of the insurance agreement. It can also refer to the document that details the contract.
- Accident policy: This type of policy provides coverage for bodily injuries sustained during the policy term.
- Commercial general-liability policy: This policy covers most commercial risks, liabilities, and causes of loss, including personal injury and property damage to a third party.
- Homeowner's policy: This policy provides coverage for a variety of risks, including loss by fire, water, burglary, and the homeowner's negligent conduct.
These examples illustrate how different types of insurance policies fall under the umbrella of a standard policy. Each policy has its own specific terms and conditions, but they all share the commonality of being a contract of insurance.