ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Insuring agreement-Describes the covered perils, or risks assumed, or nature of coverage. This is where the insurance company makes one or more express promises to indemnify the insured.

Detailed explanation-2: -An insurance policy is a legal contract between the insurance company (the insurer) and the person(s), business, or entity being insured (the insured). Reading your policy helps you verify that the policy meets your needs and that you understand your and the insurance company’s responsibilities if a loss occurs.

Detailed explanation-3: -The Insuring Agreement This is a summary of the major promises of the insurance company and states what is covered. In the Insuring Agreement, the insurer agrees to do certain things such as paying losses for covered perils, providing certain services, or agreeing to defend the insured in a liability lawsuit.

Detailed explanation-4: -Most insurance contracts are indemnity contracts. Indemnity contracts apply to insurances where the loss suffered can be measured in terms of money. Principle of Indemnity. This states that insurers pay no more than the actual loss suffered.

Detailed explanation-5: -The insuring agreement usually appears early in the policy, behind the declaration page but before other portions of the policy that state exclusions, conditions, and definitions. Like the declarations page, review the insuring agreement to make sure the description of coverage is as expected.