The insurance agreement is a brief statement that sets out the payments that the insurer promises to make to you (or on your behalf) in the event of covered damages. It often starts with the words « We will pay. » The insurance contract is the basis of the policy. In British Columbia, there are several important offsets that are not created in the same way as the above guidelines. Compensation that covers school districts, hospitals, foster parents, colleges, universities, and midwives is set out in manuals and guidelines published by the Treasury Department`s Department of Risk Management. Exclusions – These provisions of the policy set the limits of the promises of coverage set out in insurance contracts. These provisions are used for one or more purposes, including disposal to cover (1) cover losses caused by certain hazards, (2) cover other insurance, (3) cover non-insurable losses. In principle, exclusions are those parts of the insurance contract that limit the scope of coverage and/or list the causes and conditions that are not covered. Below is an example of common exclusions in an auto insurance policy – The most important parts of the policy to determine coverage in this case were clauses 2.A and 2.B that were relevant: This is a summary of the insurance company`s key promises and indicates what is covered. In the insurance agreement, the insurer agrees to do certain things, such as .B.