declaration

Dictionary of Business Terms for: declaration
declaration
  1. formal pleadings by a plaintiff as to the facts and circumstances that gave rise to his cause of action. Also, a statement made out of court.
  2. legal document used to create a condominium. It includes a description of the property and the uses to which it is restricted, a description of individual ownership units, common elements, and procedures for amending the declaration.
  3. statement that an insured makes (declares) about loss exposures in an application for a policy. For example, in a personal automobile policy, the applicant states his/her name, address, occupation, type of automobile, expected mileage per year, etc. The insurer uses this information to set a premium rate.
Dictionary of Insurance Terms for: declaration
declaration

statement that the insured makes (declares) about loss exposures in an application for a policy. For example, in a personal automobile policy the applicant states his/her name, address, occupation, type of automobile, expected mileage per year, etc. Based on this information, the insurance company decides which underwriting classification in which to place the risk; applicable premium rate; maximum limits of coverage; and any special conditions to govern the insured’s behavior that is to be attached to the policy.

Dictionary of Real Estate Terms for: declaration
declaration
  1. formal pleadings by a plaintiff as to the facts and circumstances that gave rise to his cause of action. Also, a statement made out of court.
    Example:The unhappy land buyer offered a declaration explaining the claim that the property was misrepresented.

  2. a legal document used to create a condominium. Includes a description of the property and the uses to which it is restricted, a description of individual ownership units, common elements, and procedures for amending the declaration.
    Example: Adeveloper constructs apartments and wishes to market them as a condominium. He prepares and records a declaration, which describes the division of individual and common ownership, a set of bylaws and a master deed for the project.

Copyright (c) by Barron's Educational Series. Reprinted by arrangement with the publisher of this site.