YOU ASK:
What is the definition of Policy?
WE ANSWER:
A policy outlines the agreement between the insurance company and the policyholder. It is a legal document, a contract that provides the details as to who is being covered and what coverage is provided.
Details that the policy outlines include:
- The premiums to be paid, and when these premiums should be paid
- Who the beneficiaries are, and how much they stand to receive (if this is specified)
- Deductibles that the individual or entity has to pay
- The perils that are covered, as well as those that are excluded
- For health insurance policies, the policy states which medical services, medicines and treatments are paid or reimbursed
The policy serves as a basis when insurance policies and insured persons want to check as to what claim is payable.
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More insurance terms around policy:
- Policy Dividend Options
- Policyholders’ Surplus
- Political Risk Insurance
- Pollution Insurance
- Pool
- Pre-Existing Condition
- Preferred Provider Organization
- Preferred Risk Class
- Premises
- Premium
- Point-of-Service Plan
- Personal Lines
- Personal Injury Protection Coverage (PIP)
- Personal Articles Floater
- Period Certain
- Peril
- Per Stirpes Beneficiary Designation
- Per Capita Beneficiary Designation
- Pension
- Pension Benefit Guaranty Corporation