The contract of insurance which includes specific time period, premium, coverage and deductible is called as insurance policy. Insurance policy is a legal contract made between insurance companies and policy holder or insured person. The person who buys the insurance policy is called as policy holder or insured person.
Insurance companies agree to pay for certain type of lose or damage. The policy holder pay some amount of money to insurance companies by installments, that amount can be called as insurance premium. Insurance policies give protection towards the financial losses. The main reason for insurance is to protect one’s belongings and assets against the financial losses. The different types of insurance policies are health, life, auto, travel, property and liability insurance policies. Insuring anything rather than human life can be called as general insurance.
Most of the insurance polices are standardized. The insurance polices are standardized based upon the forms created by ISO or the American Association of Insurance Services. Insurance polices divides into different sections, these sections are declarations, definitions, insuring agreement, exclusions, conditions, endorsement, riders, and other provisions.
