Property and Casualty Insurance Practice Exam

What is typically located at the front of an insurance policy and contains key information about the insured?

1. Declaration

2. Schedule

3. Summary

4. Article

The correct answer is: Declaration

The declaration is the component of an insurance policy that typically appears at the front and contains essential information about the insured. This section includes specific details such as the name of the insured, the address, the policy number, coverage types, premium amounts, and the effective dates of coverage. It serves as a summary of the important facets of the insurance contract and allows both the insurer and the insured to quickly reference key facts about the coverage being provided. The other terms, while related to insurance policies, serve different functions. The schedule refers to a detailed listing of additional coverages, limits, and specific terms that apply to the insured property, rather than crucial identification details. The summary usually outlines the main points of coverage but is not a formal part of the policy. Articles typically refer to sections of the policy that delve into specific conditions, exclusions, or stipulations but do not provide the initial overview needed for understanding the insured's key information.