What Does Insuring Agreement Mean?
An insuring agreement is the section of an insurance contract in which the insurance company specifies exactly which risks it will provide insurance coverage for in exchange for premium payments at a certain value and interval. The insuring agreement also typically lists the exclusions for insurance coverage so that the policyholder knows the exact extent of their coverage.
Insuranceopedia Explains Insuring Agreement
Insuring agreements are necessary in case a dispute arises over whether or not a particular loss is covered. Both the insurance company and the policyholder should be able to tell from the insuring agreement whether a loss is covered. Although insuring agreements are designed to clear up these issues, disagreements still arise about the terms of the insuring agreement. These often result in lawsuits in which each party puts forth competing interpretations of the insuring agreement.