| An
insurance policy is a legally binding contract between an insurance
company and the person who buys the policy, commonly called the "insured"
or the "policyholder." In exchange for payment of a specified sum of
money, called the "premium," the insurance company agrees to
pay for certain types of loss or damage as specified by the contract. When
a loss occurs which meets all of the requirements described by the terms of an
insurance policy, the loss is said to be "covered" by that policy. |
