What term refers to the formal document that outlines the terms of an insurance agreement?

The term that refers to the formal document outlining the terms of an insurance agreement is known as an insurance policy. An insurance policy is a legally binding contract between the insurer and the insured, detailing the coverage provided, the premiums to be paid, the conditions under which claims may be made, and the obligations of both parties.

The insurance policy serves as a critical document as it sets the expectations for both the insurer and the insured, defining the scope of coverage and the parameters of the agreement. It includes vital information such as policy limits, exclusions, endorsements, and any applicable deductibles, making it essential for both parties to understand their rights and responsibilities.

In contrast, while a contractual agreement could generally describe various types of contracts, it does not specifically refer to the unique aspects and details contained within an insurance policy. An insurance binder is a temporary agreement or confirmation of insurance coverage but does not serve as the formal document detailing the full terms of the insurance. Lastly, an underwriting document generally relates to the evaluation process for determining the insurability of an applicant rather than the formal agreement itself.