In an insurance contract, where are the terms used throughout the policy defined?

In an insurance contract, the section where terms used throughout the policy are defined is typically referred to as the "Definitions" section. This part of the policy provides clarity on the specific meanings of words and phrases that may have particular relevance or significance within the context of the insurance agreement. By defining these terms, the policy ensures that both the insurer and the insured have a mutual understanding of key concepts and provisions, which helps to prevent misunderstandings or disputes regarding coverage and responsibilities.

Having a well-defined glossary or definitions section is critical in the interpretation of the policy, as insurance language can often be complex and nuanced. This allows policyholders to comprehend exactly what is covered, what is excluded, and the conditions under which the policy operates.

In other sections like Declarations, the specifics of the coverage, premiums, and insured parties are laid out, but not the particular meanings of specific terms. Conditions refer to the stipulations that both parties must adhere to for the policy to remain valid, while Coverages outline the protections provided under the policy. None of these sections serve the primary purpose of defining terms as effectively as the Definitions section does.