Property & Casualty Insurance Exam (National Portion)Property and Casualty Insurance BasicsMedium
A policyholder's commercial general liability (CGL) policy includes coverage for bodily injury and property damage, as well as personal and advertising injury. This comprehensive statement of the insurer's promise to pay for covered perils is found in which part of the policy?
- AConditions
- BDeclarations
- CExclusions
- DInsuring Agreement
Show answer & explanationAnswer & explanation
Correct answer: D. Insuring Agreement
The Insuring Agreement is the core of an insurance policy, stating the insurer's promise to pay and describing the perils covered. It outlines the scope of coverage, such as bodily injury, property damage, and personal and advertising injury in a CGL policy.
Why the other options are wrong
- A. The Conditions section outlines the duties and responsibilities of both parties.
- B. The Declarations page contains specific policy details like limits and premium, but not the promise to pay.
- C. The Exclusions section lists what is not covered by the policy.
Insuring Agreement
The section of an insurance policy that contains the insurer's promise to pay and specifies the perils covered, the property covered, and the nature of the coverage.
- The heart of the policy, defining coverage scope
- Outlines the circumstances under which the insurer will provide benefits
- Often includes definitions of key terms
Memory trick: INSURING AGREEMENT is where the PROMISE is made.