3.3 Policy Structure Copy

Declarations

The declarations section of a policy includes the identity and address of the named insured, the policy term or period, the amount of insurance or limits of liability, the policy premium, and any applicable deductibles. The declarations will also include either a property description or a schedule of coverage parts, and a list of any endorsements.

Definitions

Definitions define important terms used in the policy language. Some policies list definitions in a distinct section having that title. Some policies include definitions in the “Conditions” section, while others spread definitions throughout policy sections.

Insuring Agreement or Clause

The insuring clause or agreement describes the covered perils, or risks assumed, or nature of coverage, or makes some reference to the contractual agreement between insurer and insured.

Conditions

Policy conditions set provisions, rules of conduct, duties, and obligations for the parties

Exclusions

Exclusions may describe property, perils, hazards, or losses arising from specific causes which are not covered by the policy.

Endorsements

Endorsements are used to add, delete, or change any of the policy parts. Endorsements may alter the content of the declarations and insuring agreement, and they may contain conditions, exclusions, and definitions.

As a competent adjuster, you must be able to interpret policy. This means you must be able to comprehend and retain what you read