A payment made to an insurance company, usually on a monthly basis, to cover the cost of an insurance policy is the premium.
What is meant by insurance policy?
- An insurance policy is a binding agreement between the insurance provider (the insurer) and the individual(s), firm, or other entity being insured (the insured).
- Reading your policy enables you to make sure that it addresses your needs and that you are aware of both your own and the insurance provider's obligations in the event of a loss.
- Elements of an insurance agreement. Declarations: Describes who is an insured, their address, the insurance provider, the risks or items covered, the policy limits (amount of insurance), any applicable deductibles, their policy number, the duration of the policy, and the premium amount.
- Automobile, health, travel, and homeowner's insurance are a few examples of generic insurance categories.
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