policy

The general principles by which a government is guided in its management of public affairs, or the legislature in its measures. A general term used to describe all contracts of insurance.

See policy of insurance.

This term, as applied to a law, ordinance, or rule of law, denotes its general purpose or tendency considered as directed to the welfare or prosperity of the state or community. A species of "lottery" whereby the chance is determined by numbers; "numbers game" also being a lottery. People v. Hines, 258 App.Div. 466, 17 N.Y.S.2d 141, 142.

Policy is a lottery or game of chance where bettors select numbers to bet on and place the bet with a policy writer. State v. Harris, Mo.App., 325 S.W.2d 352, 354.

See lottery

@ public policy

That principle of the law which holds that no subject can lawfully do that which has a tendency to be injurious to the public or against the public good. The principles under which the freedom of contract or private dealings is restricted by law for the good of the community. The term "policy," as applied to a statute, regulation, rule of law, course of action, or the like, refers to its probable effect, tendency, or object, considered with reference to the social or political wellbeing of the state. Thus, certain classes of acts are said to be "against public policy," when the law refuses to enforce or recognize them, on the ground that they have a mischievous tendency, so as to be injurious to the interests of the state, apart from illegality or immoralityPolicyholder. The person who owns the policy of insurance whether he is the insured or not. In most states, any person with an insurable interest may be a policyholder

+ public policy

Community common sense and common conscience, extended and applied throughout the state to matters of public morals, health, safety, welfare, and the like; it is that general and well-settled public opinion relating to man's plain, palpable duty to his fellowmen, having due regard to all circumstances of each particuj,s lar relation and situation. Hammonds v. Aetna Cas. & Sur. Co., D.C.Ohio, 243 F.Supp. 793, 796

@ policy of insurance

An instrument in writing, by which one party (insurer), in consideration of a premium, engages to indemnify another (insured) against a contingent loss, by making him a payment in compensation, whenever the event shall happen by which the loss is to accrue. Contract whereby insurer, in return for premiums, engages, on happening of designated event, to pay certain sum as provided. In re O'Neill's Estate, 143 Misc. 69, 255 N.Y.S. 767, 771.

The evidence delivered to the insured of the contract of the insurer, and ordinarily, of itself, constitutes complete evidence of the contract. United Ben. Life Ins. Co. v. McCrory, C.A. Neb., 414 F.2d 928, 932.

The written instrument in which a contract of insurance is set forth.

See also face of policy

- floater policy

- homeowners policy

- master policy.

@ assessable policy

A policy under which a policyholder may be held liable for losses of the insurance company beyond its reserves.

@ blanket policy

A policy of fire insurance which contemplates that the risk is shifting, fluctuating, or varying, and is applied to a class of property rather than to any particular article or thing. The term "specific" as applied in insurance phraseology is frequently used in contrast with "blanket insurance" and denotes coverage of a particular piece of property or property at a specific location, as contrasted with blanket insurance which covers the same and other property in several different locations.

+ blanket policy

Policy covering more than one type of property in one location, or one or more types of property at more than one location.

@ class of life insurance policies

Those policies issued in the same calendar year, upon the lives of persons of the same age, and on the same plan of insurance.

@ endowment policy

A policy which agrees to pay to the insured, if living at the expiration of a certain period, a specified amount of money, and in the event of his death in the interim, agrees to pay the face amount of the policy to his designated beneficiary. Silen v. Silen, 44 Wash.2d 884, 271 P.2d 674, 676.

See policy of insurance (policy)

@ extended policy

A policy which provides protection beyond the time when premiums are no longer paid. Floater policy. A policy of fire insurance not applicable to any specific described goods, but to any and all goods which may at the time of the fire be in a certain building.

@ incontestable policy

A policy which contains a provision to the effect that the company after the policy has been in force cannot contest, challenge or cancel the policy on the basis of statements made in the application. The period of contestability may be one, two or three years.

@ interest policy

One where the assured has a real, substantial, and assignable interest in the thing insured; as opposed to a wager policy.

@ master policy

In group life, medical, etc. insurance, the single policy under which the participants are covered. The individuals covered by the master policy receive a certificate indicating their participation.

+ master policy

An insurance policy which covers a group of persons as in health or life insurance written as group insurance. Generally, there is only one master policy and the participants have only certificates evidencing their participation

@ mixed policy

A policy of marine insurance in which not only the time is specified for which the risk is limited, but the voyage also is described by its local termini; as opposed to policies of insurance for a particular voyage, without any limits as to time, and also to purely time policies, in which there is no designation of local termini at all.

@ open policy

One in which the value of the subject insured is not fixed or agreed upon in the policy as between the assured and the underwriter, but is left to be estimated in case of loss. The term is opposed to "valued policy," in which the value of the subject insured is fixed for the purpose of the insurance, and expressed on the face of the policy. But this term is also sometimes used to describe a policy in which an aggregate amount is expressed in the body of the policy, and the specific amounts and subjects are to be indorsed from time to time

@ paid-up policy

In life insurance, a policy on which no further payments are to be made in the way of annual premiums

@ participating policy

A policy commonly found in mutual insurance companies and in some stock companies in which the insured participates in the profits by receiving dividends or rebates from future premiums

@ policy loan

An advancement on life policy without a personal obligation on the part of the policyholder as to repayment. Board of Assessors of the Parish of Orleans v. New York Life Ins. Co., 216 U.S. 517, 30 S.Ct. 385, 54 L.Ed. 597.

A loan made by an insurance company which takes the policy's cash reserve as security for the loan

@ policy reserves

Funds held by insurance company specifically to meet its policy obligations. Term policy. In life insurance, a policy which gives protection for a specified period of time but no cash or reserve value is created in the policy.

See insurance.

@ time policy

In fire insurance, one made for a defined and limited time, as, one year. In marine insurance, one made for a particular period of time, irrespective of the voyage or voyages upon which the vessel may be engaged during that period.

@

- valued policy

@ voyage policy

A policy of marine insurance effected for a particular voyage or voyages of the vessel, and not otherwise limited as to time.

@ wager policy

An insurance upon a subject-matter in which the party assured has no real, valuable, or insurable interest. A mere wager policy is that in which the party assured has no interest in the thing assured, and could sustain no possible loss by the event insured against, if he had not made such wager. Such policies are generally illegal, or not otherwise written, because the insured does not have an insurable interest

@ policy value

The amount of cash available to the policyholder on the surrender or cancellation of the insurance policy

@ policy year

In insurance, the year which commences with the date of the commencement or anniversary of the policy

@