What is an Insuring Agreement?
An insuring agreement is the part of an insurance contract in which the insurance company explains exactly which risks it will give insurance coverage for in exchange for premium payments at a certain amount and interval. The insuring agreement also generally lists the exclusions for insurance coverage so that the policyholder knows the specific extent of their coverage. Insuring agreements are necessary in case a conflict arises over whether or not a specific loss is covered. Both the insurance company and the policyholder should be able to determine from the insuring agreement whether […]