Policy Organization Although all insurance contracts contain these elements, policies can be organized in a number of different ways. Some policies contain the declarations, insuring agreement, conditions, definitions, and exclusions all in one single, continuous page. Another format uses a policy jacket, also called a skeleton policy, that contains general conditions and the declarations. …
Parts of the insurance contract . daclaration,Insuring Agreements, Conditions, exclusions, and Definitions. Since an insurance policy is a legal contract, it must be very specific about the agreements between the insured and the insurer. To do this, most policies contain five parts: declarations, insuring agreements, conditions, exclusions, and definitions. The declarations, which are almost …
In addition to the characteristics an insurance contract shares with other valid contracts, it also has some special features of its own. Principle of Indemnity One of the most important characteristics of an insurance contract is that it is a contract of indemnity. The principle of indemnity states that when a loss occurs, an …
Describe the elements of a legally valid contract and how those elements apply in an insurance transaction Elements OF A valid Contract Now that you’re familiar with some of the principles of insurance,, look more closely at the insurance contract itself.let’s You’re probably familiar with the term contract. A contract is a legal …