What is the definition of an insurance policy?

The definition of an insurance policy is best captured by the notion that it is a contract stipulating the coverage terms and obligations. An insurance policy is a formal agreement between the insured party and the insurer, which outlines the specific details of what is covered, the obligations of both parties, and the circumstances under which claims can be made. This contract establishes the legal framework under which the insurance coverage operates, including the premium payment, coverage limits, deductibles, and exclusions.

The other options either provide partial information or represent components of an insurance policy rather than its complete definition. For instance, stating the amount of premium paid refers only to a single aspect of the financial arrangement, while a receipt for payment signifies evidence of transaction but does not explain the essence of the insurance coverage itself. Similarly, a list of exclusions and limitations highlights certain restrictions within the policy but does not encompass what the policy is as a whole. Thus, the comprehensive definition lies in understanding the policy as a contract that delineates coverage and responsibilities between the insurer and insured.