Saturday, April 20, 2019

Legal Aspects of an Insurance Contract

Standardization and Structure of Contracts

The terms of an insurance contractare embodied in a written document called the insurance policy. Policy forms vary in complexity depending upon the type of insurance coveragebut a certain degree of standardization exists and these standards are very similar from one country to another. Also, a certain degree of uniformity exists and is essential in the presentation  (the structure) of insurance policies

The terminology used is peculiar to insurance but the declarations, insuring agreement, definitions, exclusions, and conditions are the essential parts of all insurance policies.  In addition to the basic policy form, an insurance policy frequently contains several attached forms, riders, or endorsements modifying the coverage.

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