Insurance Contract

An insurance contract is a document representing the agreement between an insurance company and the insured. Central to any insurance contract is the insuring agreement, which specifies the risks that are covered, the limits of the policy, and the term of the policy. Additionally, all insurance contracts specify:

• conditions, which are requirements of the insured, such as paying the premium or reporting a loss;
• limitations, which specify the limits of the policy, such as the maximum amount that the insurance company will pay;
• exclusions, which specify what is not covered by the contract.