What Does Standard Form Mean?
The standard form is an insurance policy used by many insurance companies. Its features, including coverage and provisions, hardly vary from one company to another, either because it has been viewed as a model for the industry for so long or because it adheres to laws guiding the industry.
Insuranceopedia Explains Standard Form
The standard form offers only the basic coverage. It has no provisions for special or irregular risks. A standard health insurance form, for example, will cover the financial loss for sickness and offer a death benefit, but it won't cover any unnatural health risks. Likewise, a racecar driver is not likely going to be offered a standard motorist policy.
Because the standard form covers predictable risks, it offers the cheapest premium. A person or an entity usually only gets the standard form of insurance because the law mandates that they need one.