What is an insurance policy?

An insurance policy is fundamentally a contract that outlines the terms of coverage between the insurer and the insured. This document specifies the obligations of both parties, including what is covered, the duration of coverage, premium amounts, deductibles, and the process for filing claims. It is a legal agreement that lays out the rights and responsibilities of both the insurer and the insured, thereby serving as a crucial component of the insurance relationship.

The other options do not accurately capture the essence of an insurance policy. A summary of claim procedures is helpful in guiding policyholders through the claims process but does not define the coverage itself. A document stating the insurer's financial strength is important for understanding the insurer's stability, but it is not an insurance policy. Lastly, a guide for insurance agents may provide operational procedures or sales techniques, yet it does not encompass the contractual element that characterizes an actual insurance policy.