MANAGEMENT

Detailed explanation-1: -Conditions are provisions inserted in the policy that qualify or place limitations on the insurer’s promise to pay or perform. If the policy conditions are not met, the insurer can deny the claim.

Detailed explanation-2: -A document containing terms and conditions of insurance contract is called policy.

Detailed explanation-3: -Most insurance providers only cover pure risks, or those risks that embody most or all of the main elements of insurable risk. These elements are “due to chance, ” definiteness and measurability, statistical predictability, lack of catastrophic exposure, random selection, and large loss exposure.

Detailed explanation-4: -Every insurance policy has five parts: declarations, insuring agreements, definitions, exclusions and conditions. Many policies contain a sixth part: endorsements. Use these sections as guideposts in reviewing the policies. Examine each part to identify its key provisions and requirements.