In insurance, usually the insurance policy is a legally binding contract between the insurance provider and the insured, that dictates the claims that the insurance provider is legally obligated to cover. In return for an upfront payment, called the premium, the insurance provider promises to cover financial loss incurred due to perils specifically covered by the insurance policy. The insurance policy is usually expressed in a variety of legal forms, including common contract, limited company insurance policy, etc. It is very difficult to determine the insurance policy from an insurance booklet or policy document alone, so it is advisable to consult an insurance attorney who is familiar with insurance-related terminology. In case of doubt, the attorney can clarify the finer points of your insurance policy.
Each insurance policy comes with a premium and this is what gives the insured and the insurer the right to negotiate over the terms of the contract. In general, insurance contracts are designed to give the insurer the assurance that should a claim be lodged against the insured, they will be able to recover their money, without fail, even if the claim is ruled inadmissible. Usually, premiums are charged on a monthly basis, but this varies from insurer to insurer. Different types of policies offer different premiums, but a comparison of all the quotes will reveal the range of costs associated with the contract.
Many insurance policies limit the amount of no-fault insurance coverage available. However, there is no fixed limit on the amount of no-fault insurance coverage. Instead, the insured pays the full premium up to the policy limit, irrespective of the total amount of coverage. Some insurance policies also specify a lifetime maximum on the amount of no-fault insurance coverage. The insurance policies may also contain a built-in death benefit, which serves as a financial replacement for the beneficiaries in the event of the policy holder’s death. Insurance policy limits usually affect the cost of the premiums.
Most insurance policy limits specify that the benefits will be provided to whomever is designated as the beneficiary, i.e., the insured. If the insured dies during the grace period, then the beneficiary receives whatever was left by the insured when he/she passed away. However, this differs from insurer to insurer. You can get more information about Builders Risk Insurance
A number of endorsements are sometimes included in an insurance policy, including endorsement clauses that permit the insurance policy to be transferred to a spouse or other family members. However, some insurers do not permit transfers unless certain conditions are met. Similarly, most insurance companies do not permit transfers of contracts between employees. Transfer of contracts is often allowed if the insured has more than one type of insurance policy with the same insurer.
The terms and conditions governing the transfer of an existing term life insurance policy usually refer to the insured being either a single person or a couple. In such cases, the transferor is usually the spouse of the insured. If both are insurable, then the transferor receives the entire face value of the contract and the proceeds of the premium. Transferor beneficiaries receive their contract premium and any premiums that the insured had paid during the term of the life insurance policy.