What is included in the insuring agreement of an insurance policy?

• A. A list of premium rates
• B. A summary of the insurer's promise to pay
• C. Definitions of terms and conditions
• D. Procedures for filing a claim

Answer: (B)

The insuring agreement of an insurance policy is a crucial component that outlines the insurer's commitment to cover specific risks or events as detailed in the policy. The correct choice emphasizes a summary of the insurer's promise to pay, providing the policyholder with an understanding of what is covered and the extent of the coverage provided.

This section typically articulates the basic agreement, detailing the types of losses that are covered under the policy, the conditions under which the coverage applies, and the insurer's obligation to pay for those losses. It forms the foundation of the insurance contract, clearly stipulating what the insured can expect in terms of financial support in case of a covered loss or damage.

While other parts of the insurance policy, such as premium rates, definitions, and claims procedures, play important roles in the overall understanding and functionality of the policy, they do not constitute the insuring agreement itself. The insuring agreement is specifically focused on the promises made by the insurer regarding coverage, which is why it is the central aspect of the insurance contract that relates directly to what is protected under the policy.