South Carolina Personal Lines Practice Exam

What does the declaration section of a policy describe?

1. The rights and duties of the insured

2. The who, what, where, and when of policy coverage

3. The conditions under which coverage is provided

4. The exclusions from coverage

The correct answer is: The who, what, where, and when of policy coverage

The declaration section of an insurance policy serves as a summary that typically includes critical information about the insured party and the specifics of the coverage. It delineates the "who," which is the identity of the insured; the "what," which specifies the type of insurance or coverage being provided; the "where," indicating the location where the coverage applies; and the "when," which encompasses the effective dates of the policy. This section is crucial because it sets the framework for the policy, providing the foundational details that clarify the scope of coverage. By clearly stating these elements, the declaration section allows both the insurer and the insured to understand the essential aspects of the agreement, ensuring that there is no confusion about the parties involved or the terms of coverage.