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Insuring Agreements – Second Part of Insurance Policy


Insuring Agreements (Inclusions) – Second Part of DICEE

Our back-to-basics articles continue with looking at the second part of any insurance policy referred to as Insuring Agreements.  I decided to continue with another back-to-basics article after the popularity of last week’s article – Is An Insurance Policy A Contract? 

Workers Compensation policies are no different.   When I was in insurance training classes for a major unnamed carrier in the 1980s, one of the most important subjects was rapid policy comprehension.

According to the insurance carrier policy training instructor, any policy has the same parts (almost).  Being able to understand a policy was the first step to adjusting the assigned claim.   Before the insurance line adjusting specialization began in the 1990s, claims adjusters were trained in all lines of coverage.

I remember adjuster trainees disappearing quickly from the training class due to tests covering policy comprehension. DICEE became a very rapid way to understand if coverage was applicable for a certain claim.

The “I” in DICEE was at one time called Inclusions – now Insuring Agreements seems to be the dominant term.

DICEE and Insuring Agreements

The parts of an insurance policy are:

  • Declarations
  • Insuring Agreements
  • Conditions
  • Exclusions
  • Endorsements

My quick definition is the heart of an insurance policy. According to the SC Department of Insurance.

This is a summary of the major promises of the insurance company and states what is covered. In the Insuring Agreement, the insurer agrees to do certain things such as paying losses for covered perils, providing certain services, or agreeing to defend the insured in a liability lawsuit.

Live Policy Examples

A policyholder sent me their Workers’ Compensation policy as part of our premium audit reviews.  Instead of adding five pages of policy info, below is where the Insuring Agreements begin in a standard Workers Comp policy and end.

Workers Comp Policy Insuring Agreement 1
(c) NCCI


Workers Comp insurance policy insuring agreements part 2
(c) NCCI

Whether it is Insuring Agreements or Endorsements, please always read your policies before signing off on the policy will result in avoiding later headaches.



James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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