package policy that combines (1) coverage against the insured's property being destroyed or damaged by various perils, and (2) coverage for liability exposure of the insured.

Homeowners policies cover both individuals as well as property. In addition to the insured, those covered include his or her spouse, their relatives, and any others under 21 who are residents of the insured's household.

policy that pays benefits to an insured who becomes ill or injured, provided that documentation is offered to confirm the illness or injury.

determination of (1) property covered, property excluded; (2) perils covered, perils excluded; (3) location covered, location excluded; (4) time period the policy is in force; (5) persons covered, persons excluded; (6) policy limits; and (7) coinsurance requirements.

legally binding unilateral agreement between an insured and an insurance company to indemnify the buyer of a contract under specified circumstances. In exchange for premium payment(s) the company covers stipulated perils.

replacement for the earlier Family Automobile Policy (FAP) with these nine basic coverages:

1. Coverage A-Liability. (a) The company pays damages for which an insured becomes legally obligated because negligent acts or omissions resulted in bodily injury and/or property damage to a third party; (b) the company defends the insured against liability suits for damages caused to the third party, paying various expenses in this connection; and (c) vehicles covered include the insured's own cars, a newly acquired car, and a temporary substitute car.
2. Coverage B-Medical Payments. The company pays medical expenses for bodily injury incurred by the insured (including spouse and relatives) and any other person while they occupy the insured car.
3. Coverage C-Uninsured Motorist Coverage. The company pays damages that the insured is legally entitled to collect from the owner or driver of an uninsured motor vehicle.
4. Coverage D-Comprehensive. The company pays for loss to the insured's car for all damages, in excess of a deductible amount, except due to collision.
5. Coverage E-Collision. The company pays for loss to the insured's car for all damages in excess of a deductible amount caused by collision.
6. Coverage F-Car Rental Expense (optional). The company pays for car rental up to a daily dollar limit, when the insured's car cannot run due to a loss incurred.
7. Coverage G-Death, Dismemberment, and Loss of Sight (optional). The company pays the insured or beneficiary for death or loss caused by an accident to the insured.
8. Coverage H-Total Disability (optional). The company pays the insured a monthly disability income benefit because of bodily injury in an accident while occupying or being struck by a motor vehicle.
9. Coverage I-Loss of Earnings (optional). The company pays the insured a percentage of his or her loss of monthly earnings because of bodily injury as the result of an accident while occupying or being struck by a motor vehicle.