Policy, Insurance

a document, usually made out in the name of the policyholder, that certifies contracts for personal or property insurance and for contractual relations with respect to mandatory state insurance. In the USSR, voluntary insurance policies are given to the insured (the citizen or organization in whose interest insurance is provided) after the first premium is paid. For mandatory insurance, an insurance policy is issued after agencies of the Central Administration of State Insurance have established the composition and value of the property to be insured and the size of the premiums. The policy establishes the basic terms of the insurance. These include the type and object of coverage and the life of the contract. They also include the amount of the insurance and information about the policyholder and the underwriter.