Washington State Insurance Practice Exam

What is typically included in the definitions section of an insurance policy?

1. Clarifies terms used in the policy

2. Time period during which the policy provides coverage

3. Policies covering the same risk

4. Names and addresses of the insured

The correct answer is: Clarifies terms used in the policy

Typically, the definitions section of an insurance policy includes explanations and clarifications of the terms and language used throughout the policy. This section helps ensure that there is no confusion or misunderstanding regarding the meaning of key terms within the policy. By defining specific terms, insurance companies aim to provide clarity and prevent disputes between the insured and the insurer. This section is crucial for policyholders to understand the scope and limitations of their coverage. Options B, C, and D are not typically found in the definitions section of an insurance policy. The time period during which the policy provides coverage is usually addressed in the policy's coverage provisions or declarations section. Policies covering the same risk and names and addresses of the insured are typically found in other sections of the insurance policy, such as the declarations page or policy schedule.