Question
What is the term for an insurance contract, usually in a
standard form, between the insurer and the insured (policyholder), outlining the legally required claim that the insurer must pay, with an initial payment referred to as what?Solution
An insurance policy is a contract (usually a standard form contract) between the insurer and the insured, known as the policyholder, which sets out the claim that the insurer is legally required to pay. In lieu of initial payment, it is known as Premium.
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