West Virginia Property and Casualty Licensing Practice Exam

What type of information would a policyholder expect to find in the agreement section of an auto insurance policy?

1. The terms of liability

2. The insurance company's promise to pay

3. Coverage limits and deductibles

4. Exclusions and conditions

The correct answer is: The insurance company's promise to pay

In the agreement section of an auto insurance policy, a policyholder would primarily find the insurance company's promise to pay for covered claims. This section outlines the insurer's commitment to provide coverage as specified in the policy's terms. It establishes the foundational expectation of the policyholder that, in exchange for the payment of premiums, the insurer will assume certain financial responsibilities in the event of a loss. While details related to liability terms, coverage limits, deductibles, and exclusions are crucial components of the policy as a whole, they typically reside in their respective sections of the document. The agreement section specifically encapsulates the core promise made by the insurance company, making it a key part of understanding the contractual relationship established in the insurance policy.