MASTER POLICY Meaning and
Definition
-
A master policy refers to an insurance policy that is issued to a group or organization, such as an employer or an association, to provide coverage for multiple individuals or entities within that group. It is designed to provide a convenient and cost-effective way to offer insurance protection to a large number of people or properties under a single policy.
The master policy acts as a contract between the insurer and the group, outlining the terms and conditions of the coverage provided, including the scope of the coverage, premiums to be paid, and any exclusions or limitations. The individuals or entities covered under the master policy are commonly referred to as insureds or policyholders.
Typically, a master policy covers a specific type of risk, such as property, liability, or health insurance. For example, an employer may obtain a master property insurance policy to cover all the company's physical assets, including buildings, equipment, and inventory. Alternatively, a master liability insurance policy could cover the legal liabilities of multiple businesses belonging to a trade association.
In most cases, the coverage provided by a master policy is extended to the insureds on an automatic basis, without the need for individual underwriting or separate policies. However, certain aspects of the coverage, such as specific limits or endorsements, may be customizable on a case-by-case basis.
Overall, a master policy offers a centralized and streamlined approach to insurance coverage for group members, providing efficiency, flexibility, and often cost savings compared to individual policies.
Common Misspellings for MASTER POLICY
- naster policy
- kaster policy
- jaster policy
- mzster policy
- msster policy
- mwster policy
- mqster policy
- maater policy
- mazter policy
- maxter policy
- madter policy
- maeter policy
- mawter policy
- masrer policy
- masfer policy
- masger policy
- masyer policy
- mas6er policy
- mas5er policy
- mastwr policy
Etymology of MASTER POLICY
The word "master" originates from the Middle English word "maister" or "mester", which was derived from the Old English word "mægister" meaning "one having control or authority". It further traces back to the Latin word "magister", which means "chief, head, or teacher".
The word "policy" comes from the Middle English word "policie", derived from the Old French word "police", which means "government" or "public administration". It ultimately stems from the Latin word "politia", meaning "state", "government", or "citizenship".
When these two words are combined to form "master policy", the term generally refers to an insurance policy that serves as the primary or overall policy for a group of subsidiary or subordinate policies.
Similar spelling word for MASTER POLICY
Infographic
Add the infographic to your website:
