insurance contract
Risk transfer document
An insurance contract is a legally binding agreement between an insurer and a policyholder.
The insurer agrees to compensate for specified losses—damage, illness, death—in exchange for premium payments.
The contract details coverage limits, exclusions, and conditions for claims.
Unlike most contracts, insurance contracts are contracts of adhesion: the insurer drafts the terms, and the policyholder accepts or rejects them without negotiation.
- insurable interestFinancial reason to insure
- claimStatement of ownership or truth
- life assuranceFinancial protection against death
- coverProtect by overlaying
- subrogationSuccessor assumes claim rights
third party · premium · enforceability · indemnity · endorsements · good faith · riders · protection · peace of mind · policy · signed and sealed · terms and conditions · fine print · consideration · broker · policy renewal · underwriter · out of pocket
- farm agreementsfarm lease, sharecropping, tenant farming, farm management, sharecrop
- contractslease, clause, oral, severance package, assent
- liability insuranceliability coverage, general liability, personal liability, professional liability, public liability
insurance contractself-funding
Paying one's own way
personal savings · emergency fund · rainy day fund · cash reserves · gambling
insurance contractwarranty
Formal repair promise
guarantee · service contract · surety bond · maintenance agreement · liability waiver
insurance, contract, insure, insured, insurer, insurers, insuring, uninsured, reinsure