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CHAPTER 3 TYPE OF INSURANCE

Types of Insurance



The charts below details the major types of insurance and insurance policies. There are many 
other specialty policies offered by insurance companies that are available, but are too numerous 
to cover here. 



Policies can cover either personal or commercial lines;

they can be intended to cover 
individual types of risks exposures such as for an individual’s own car or home or they can be 
intended to cover risks faced by businesses. 
They can also either be covering property or casualty risks. Casualty Insurance is primarily 
concerned with the legal liability for losses caused by injury to persons or damage to the property 
of others. Property Insurance indemnifies a person with an interest in physical property for its 
loss or the loss of its income producing abilities. Insurance can also cover life and health risks, 
but these are not the subject of this course.

Package Policies combine property and casualty coverages so that all the risks, both for 
property losses and liability losses are covered in one policy.





FOR DIRECT REDEEM CODE 
YOU CAN SEE SOME ADS ON SCREEN CLICK ON ANY ONE ADS & YOU CAN SEE YOUR REDEEM CODE




FOR DIRECT REDEEM CODE 
YOU CAN SEE SOME ADS ON SCREEN CLICK ON ANY ONE ADS & YOU CAN SEE YOUR REDEEM CODE


Insurance Policy Structure


Sections of a Policy
Most insurance policies have a common structure. For property and casualty policies there are 
standard forms that most insurance companies use that have been approved for use in most 
states. These are updated and changed periodically as the risks change over time. The group 
that puts these standard policies together is called the Insurance Services Office (ISO).
Most policies have the following sections that use language that has been tested for meaning 
over time by the court system. We will discuss what each section includes.

• Declarations
• Insuring Agreement
• Definitions
• Conditions
• Exclusions
• Endorsements 
Declarations. 

portion of the insurance contract in which is stated such information as the 
name and address of the insured, the property insured, its location and description, the policy 
period, the amount of insurance coverage, applicable premiums, and supplemental 
representations by the insured.
Insuring Agreement (or Clause). That portion of an insurance contract which states the 
perils insured against, the persons and/or property covered, their locations, and the period of the 
contract.


Additional (or Supplementary) Coverage. That portion of the policy adding coverages 
to the major coverages defined in the insuring agreement, or adding back coverages at lower 
liability limits that have been specifically excluded.
Definitions. That portion of an insurance contract where important term used in the contract 
are defined.

CAMMON INSURANCE POLICY


Conditions. These are provisions of an insurance policy which state either the rights and duties 
of the insured or the rights and duties of the insurer. 

Typical conditions have to do with such 
things as the insured's duties in the event of loss, cancellation provisions, and the right of the 
insurer to inspect the property.
Exclusions. Contractual provisions that deny coverage for certain perils, persons, property, or 
locations.

Endorsements. A form attached to the policy which alters provisions of the contract to make 
it better fit the needs of the insured or the insurer for that particular risk.

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