Definition

Noun: A formal, written contract between an insurance company and a policyholder. This document details the terms, conditions, coverage, and limits of the insurance agreement. It is a certificate proving that insurance is in effect.

Usage

An insurance policy is the core legal document in an insurance transaction. It specifies what risks are covered, the duration of coverage, the premium amount, and the process for filing a claim. You must read and understand your insurance policy.

Examples

• Before signing, the lawyer reviewed every clause in the insurance policy.
• Her home insurance policy covers damage from fire and theft.
• You should have read the small print on your policy.

Advanced Usage

• "to take out a policy": To purchase and initiate an insurance contract.
  • He took out a life insurance policy to protect his family.
• "the policyholder": The person or entity who owns the insurance policy.
  • As the policyholder, you are responsible for paying the premiums.

Variants and Related Words

• Policy (n): A common shortened form of "insurance policy."
  • I need to renew my auto policy next month.
• Insurer (n): The company that issues the insurance policy.
• Coverage (n): The scope of protection provided by the insurance policy.

Synonyms

• Insurance contract
• Indemnity contract

Related Phrases

• Policy wording: The specific text and language used in the insurance policy document.
  • The dispute centered on the interpretation of the policy wording.
• Policy limit: The maximum amount an insurer will pay under a policy for a covered loss.
  • The repair costs exceeded the policy limit.

Noun

1. written contract or certificate of insurance
   • you should have read the small print on your policy