In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy language.
[2]: 10 In some cases, however, supplementary writings such as letters sent after the final agreement can make the insurance policy a non-integrated contract.
[3] Oral agreements are subject to the parol evidence rule, and may not be considered part of the policy if the contract appears to be whole.
In a case interpreting one ancestor of the modern "products-completed operations hazard" clause,[21] the Supreme Court of California complained: The instant case presents yet another illustration of the dangers of the present complex structuring of insurance policies.
Unfortunately the insurance industry has become addicted to the practice of building into policies one condition or exception upon another in the shape of a linguistic Tower of Babel.
We join other courts in decrying a trend which both plunges the insured into a state of uncertainty and burdens the judiciary with the task of resolving it.
All other pages are standard forms that refer back to terms defined in the declarations as needed.