YOU ASK:
What is the definition of Options?
WE ANSWER:
Options, in insurance parlance, refer to contracts that give the buyer the option to buy a certain product, property or asset. It does not oblige the buyer to make a purchase, but it gives the buyer the choice as to whether to buy the asset or property at a specified date and price.
There are different options the buyer can have, such as the call option (where he will buy the product) and the put option (involving the delivery and sale of the product). The buyer can also extend the contract, terminate it, or provide a cash settlement depending on the expected or actual price, value, performance or level of the underlying assets or interests.
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More insurance terms around options:
- Ordinance or Law Coverage
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