Okuzeka
Insurance vocabulary · Policies & Contracts

Policy

Meaning in insurance, with examples

/ˈpɑːləsi/nounCore term

In insurance, policy means: The written contract between an insurance company and a customer that sets out what is covered, for how long, for how much and on what conditions.

In Turkish: poliçe, sigorta poliçesi, sigorta sözleşmesi

How it is used

Used constantly by agents, underwriters and claims staff. A policy is issued, renewed, cancelled or amended, and usually runs for a policy period of one year. Every policy has a policy number used in all correspondence.

Example sentences

  1. Could you send me your policy number so I can check what is covered?

  2. The policy was issued yesterday and the documents have been emailed to the customer.

Common collocations

  • issue a policy
  • renew a policy
  • cancel a policy
  • policy number
  • insurance policy
  • policyholderThe person or company that owns an insurance policy, signs the contract and is responsible for paying the premium.
  • premiumThe amount of money a customer pays to an insurance company for a policy, usually once a year or in monthly instalments.
  • policy scheduleThe page or section of a policy that lists its specific details: the policyholder, what is insured, sums insured, limits, deductibles, premium and dates.
  • policy wordingThe full legal text of a policy, explaining the cover, exclusions, conditions and duties of both sides.
  • renewalThe continuation of a policy for another period, usually a year, often with an updated premium and conditions.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Policies & Contracts

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This page explains English vocabulary for learners. It is not financial advice.