Principles of Risk Management and Insurance, 13th Edition

Basic Parts of an Insurance Contract

Despite their complexities, insurance contracts generally can be divided into the following parts:

• Declarations

• Definitions

• Insuring agreement

• Exclusions

• Conditions

• Miscellaneous provisions

Although all insurance contracts do not necessarily contain all six parts in the order given here, such a classification provides a simple and convenient framework for analyzing most insurance contracts.

Declarations

The declarations section is the first part of an insurance contract.

Declarations are statements that provide information about the particular property or activity to be insured. In property insurance, the declarations page typi­cally contains information concerning the identification of the insurer, name of ...