Insurance Terms: Dictionary Of

Standard parts found in most insurance contracts to define coverage:

: A receipt for a premium payment that makes the policy effective from that date, provided the application is later approved.

: A requirement that the person buying insurance must suffer a financial loss if the insured event occurs. Dictionary of Insurance Terms

: Coverage primarily concerned with legal liability for injuries to others or damage to their property.

: The legal principle that insurance should restore the insured to the same financial position they were in prior to a loss, without providing a profit. Standard parts found in most insurance contracts to

: The right of an insurer to pursue a third party that caused an insurance loss to the insured. Essential Policy Components

: A fundamental principle requiring both the insurer and the insured to act with total honesty and disclose all material facts. : The legal principle that insurance should restore

: The total amount of capital an insurance company has available to underwrite general coverage or specific risks.