Policy Structure

Question 1

What are the 4 parts to a standardized policy structure?

Answer 1

1. Declarations
2. Insuring Agreement
3. Conditions
4. Exclusions

Question 2

Describes basic info about the policy

who, what, when, where, how much

Answer 2

Declarations

Question 3

The insurance company’s promise to pay the insured

Answer 3

Insuring Agreement

Question 4

The obligations of the parties to the contract

Answer 4

Conditions

Question 5

Coverage Condition:

The period of time for which coverage applies

Answer 5

Policy period

Question 6

Coverage Condition:

Dispute resolution method when the insured and insurer cannot agree on the amount of loss

Answer 6

Appraisal

Question 7

Coverage Condition:

The maximum amount the insured will pay for a covered loss

Answer 7

Limit of liability

Question 8

Coverage Condition:

The obligations of the insured that must be met following a loss

Answer 8

Duties in the event of loss

Question 9

Coverage Condition:

The insured may not transfer rights of ownership without the insurer’s prior written consent

Answer 9

Assignment

Question 10

Periods that are NOT covered in the policy

Answer 10

Exclusions

Question 11

Automatically included in property policies without an additional premium

Answer 11

Additional coverages