Insurance108 · Module III · Lesson 08 of 9
Visuals · 8 min

Anatomy of a policy

Every section and what it obligates.

Visuals
The five sections of an insurance policy

A vertical diagram of a policy document with five labeled sections. (1) Declarations page — the policy summary: named insureds, coverage limits, deductibles, premium. (2) Insuring agreement — what the insurer promises to pay for. (3) Exclusions — what the insurer will not pay for. (4) Conditions — what the insured must do to preserve coverage. (5) Definitions — the terms of art. Annotations point to the sections where the traps hide (exclusions and conditions) and where the summary lives (declarations).

Key Ideas
  • Read the declarations page first. Then the exclusions. Then the conditions.
  • Every dispute is decided by the definitions section.
Visuals

Diagrams and schematics accompanying this lesson.