In the world of insurance, an insurance policy is basically a contract between an insurer and the individual policyholder, that sets out the maximum claims that the insurer is legally obligated to cover. In return for an initial premium, commonly called the premium, the insurance company promises to cover subsequent loss incurred by the insured as a result of perils mentioned in the policy language. This implies that the insurance company expects to be paid should a loss occur, which is often the case when a policyholder is involved in some kind of accident.
The insurance policy period is one of the more important parts of the whole arrangement. It can make or break the whole arrangement. The insurance policy period begins with the first day of the policy and continues until the end of the insured’s death. Policy declarations page are where the insurer explains what it is prepared to and cannot pay for in regard to claim amounts, or to what extent it will compensate for those claims. The declarations page is usually the last part of an agreement – you agree to what you are agreeing to! Learn more information about Restaurant Insurance
One important part of the insurance policy form is that an insured must make a claim and this is normally done on the Insurance Company’s page. The insured must state how, when, who, and in what manner the loss occurred. In addition, an insured must indicate what coverage the Insurance Company has under its policies. This coverage is usually known as ‘guaranteed renewable’, meaning that the insured is insured against loss even though the insured is unable to produce sufficient funds to meet claims due to natural causes, accident, death, or circumstances beyond the control of the insured. These include but are not limited to, theft, fire, storm, earthquake, terrorism, or war.
An additional section of the insurance policy form requires the name, address, date of birth, Social Security number and other details of the Insured. The Insured will then be liable to the Insurer for payment of premiums. The amount of coverage that the Insured is provided for will also be specified on the form. In most cases, a full coverage policy will provide coverage against each of the following: death, dismemberment, loss or damage to the insured’s personal belongings, liability for third-party injuries or Property Damage Liability, and Income or Gift Credit. The liability for the death or dismemberment of a person may also be limited to an individual only, while income or gift credit may be available to both the Insured and anyone acting on behalf of the Insured. Income or gift credit may also be limited to the family members only.
Policy limits on these four categories may be increased or decreased by a further payment referred to as premium, and this is usually incorporated into the monthly or annual premium. Policy limits are very important, especially for high risk individuals. If there are many risks involved with an Insured’s life, and an increase in premium is required to cover these risks adequately, then the Insured is in violation of the insurance policy. For example, if the Insured were to get in a car accident with someone who was a well-known drunk driver, and the injured person were to sue the Insured under the “no win no fee” provisions of the Florida car insurance policy, the Insured would not be protected in full under the no win no fee provision of the insurance policy because the cost of medical expenses would exceed the amount of the monthly or annual premiums paid.
Policyholders must understand that just because the premium for a given level of coverage is high does not mean that the level of protection provided to the Insured will be inadequate. There are many things an Insured may be held responsible for that an insurer has no control over. One of these is when a vehicle is damaged while in the Insured’s vehicle, the insured may be held financially responsible for repair costs if the vehicle is totaled. In addition, if a person becomes injured while visiting the Insured’s home or working at their business and there are no witnesses to the accident, or the Insured has failed to follow policy instructions concerning safety, and the injured person makes a claim against the Insured, then the Insured could be held financially liable.