Standard Form

What Does Standard Form Mean?

The standard form is an insurance policy used by many insurance companies, with its features, including coverage and provisions, remaining largely consistent across different providers. This consistency is due to the policy’s long-standing reputation as an industry model and its adherence to laws and regulations governing the insurance sector.

Insuranceopedia Explains Standard Form

The standard form provides only basic coverage and does not account for special or irregular risks. For example, a standard health insurance policy will cover financial losses due to illness and offer a death benefit, but it won’t cover risks related to unusual health conditions. Similarly, a racecar driver is unlikely to be offered a standard motorist policy.

Since the standard form only covers predictable risks, it generally offers the cheapest premium. Most individuals or entities opt for the standard form of insurance because it is legally required in certain situations.