Insuring Agreement
The heart of the policy, where the insurer makes its broad promise to pay covered losses. May be named-peril or all-risk in form.
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Practice This Concept
Under California Insurance Code Section 380, an 'insurance policy' is defined as:
A written contract of insurance, or written evidence of it — Section 380 defines a policy as a written contract of insurance, or written evidence of it. The written instrument is a hallmark of insurance: the policy document contains the insuring agreement, conditions, and exclusions. An application, by contrast, is the offer; a binder is temporary written evidence of coverage; and the policy itself is the complete written contract embodying the parties' agreement.
CA-specific example
How does a rider attached to a life insurance policy differ from the policy itself?
A rider is an amendment or addendum that changes or adds coverage, while the policy contains the basic contract terms — A rider, also called an endorsement, is a written amendment attached to and made part of the policy that modifies its terms — adding a benefit such as waiver of premium, changing a provision, or adding an exclusion. The policy itself is the base contract containing the insuring agreement, conditions, and exclusions. The rider and policy are read together as one contract.
National insurance concept
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