Insurance Policy

An insurance policy is a legal contract between the insurer and the party being insured, the policyholder, under which the insurer agrees to pay claims. The policy spells out what kinds of claims the insurer will pay and how much and under what conditions. The policy also states the responsibilities of both parties.

Related terms: bind, continuity date, extension, insurance, limit, package policy, terms and conditions.

Read an article: Occurrence vs claims made policies explained.