SOFA-CFE · Question #274
Insurance protection sold by an insurer is described in a written agreement (contract) between an insurance company and the insured, called:
The correct answer is C. policy. A policy is the formal written contract between an insurer and the insured that outlines the terms, conditions, coverage, and obligations of both parties - making C the correct answer. A concurrence (A) is a legal term meaning agreement or consent, not an insurance document. A…
Question
Insurance protection sold by an insurer is described in a written agreement (contract) between an insurance company and the insured, called:
Options
- Aconcurrence
- Bstatement
- Cpolicy
- DGuideline
How the community answered
(25 responses)- A8% (2)
- B4% (1)
- C72% (18)
- D16% (4)
Explanation
A policy is the formal written contract between an insurer and the insured that outlines the terms, conditions, coverage, and obligations of both parties - making C the correct answer. A concurrence (A) is a legal term meaning agreement or consent, not an insurance document. A statement (B) is a general word for a declaration and has no specific meaning in insurance contract law. A guideline (D) refers to a general rule or recommendation, not a binding legal agreement.
Memory tip: Think of a policy as a "promise on paper" - insurance companies have a policy of keeping their promises in writing, and that document is literally called the policy.
Community Discussion
No community discussion yet for this question.