Who enters into an insuring agreement?

The insuring agreement is fundamentally a contract between the insured and the insurer. This agreement outlines the terms and conditions under which the insurer will provide coverage for the insured. It specifies what risks are covered, the limits of coverage, the duration of the policy, and any exclusions or conditions that apply.

In this context, the insured is the individual or entity purchasing insurance protection, while the insurer is the company providing that coverage. Both parties must demonstrate mutual consent and understanding before the agreement can be binding, which is a critical element of any contract. The agent and the broker play intermediary roles in the insurance process, facilitating communication and transactions between the insured and the insurer, but they do not directly enter into the insuring agreement themselves.

Understanding the relationship and responsibilities between the insured and insurer is key in the realm of property and casualty insurance, as it ensures that both parties know their obligations and rights under the policy.