The term policy is typically described as one principle or a rule in guiding decisions in order to achieve sensible outcome. Such term is not usually used in order to denote those that were actually completed. This is referred as a protocol or procedure. While a certain policy encompasses the “why and what” procedures and/or protocols may contain the “how, what, when and where” schemes. In general, policies are adopted by a precise board of senior governing body contained in an organization whereas protocols or procedures can be adopted and developed by the senior executive board of officers.
The term policy can be applied to certain private sector groups, individuals and so with the government. Examples of a policy are as follows: presidential executive mandates, parliamentary rules and corporate privacy bylaws. Policy varies from laws or rules. While the law may compel or even prohibit behaviors, the policy only guides actions for those that are likely to carry and achieve an income desired by them.
In the realm of insurance, a policy is classified as the contents of a certain insurance contract. The policy signifies the specific kinds of coverage sets such as, in life, health etc., and the corresponding limitations as well as the deductibles and premiums that are applicable. ON the person of the insurer can make legal an enforceable promise into an insurance policy, the insurance business group can’t legally do to compel the person insured to pay out his or her premiums, but however, the person insured may sue in order to compel such insurer in order to provide coverage if it does no action in doing so.
Each and every insurance policy, include however, a provision which permits the insurer to deny the coverage if and when the person insured do not pay out the particular premiums.
In some aspects, insurance policies are categorized as a mere symbol of a contract, and is generally in a standard form of contract of both the person insured and the insurer, also know as the policy holder, whereby, it determines certain claims of which the insurer is required to pay out. As an exchange for the payment, known usually as the premium, the insurer pays-out the damages to the person insured which are being caused by the covered hazards under the agreement of the policy. For in an insurance contract, it is designed and intended to meet up with the specific needs, thus having countless aspects and features that are not found in other kinds of contracts.
Further, the insurance policy generally is considered as an integrated contract, which means that it all includes several forms which are associated within the agreement of both the insurer and the insured.
In conclusion, each contractual term for a particular policy during the period of delivery and of those being written afterwards as a policy endorsement or rider of with the consent of both parties are also part of a written policy. Oral agreements are also subject to rules on specific laws and cannot be considered as part of policy.