In a society where deals are sometimes arranged with nothing more than a handshake or a nod, it is sometimes hard to work out exactly which of the many communications made between an insurance company and a policy owner have a practical impact on the terms of an insurance policy. Policy owners may thus wonder whether those claims made to them, for instance, on the company’s website, or in their advertisements, or over the phone, or in writing or email are ever incorporated into the contract document.
The Entire Contract Clause
Every insurance contract, even those relevant to low cost life insurance, contains what is known as an Entire Contract Clause. The purpose of an Entire Contract Clause is to limit what forms part of an insurance policy contract to just the clauses written on the contract document itself. An Entire Contract clause is also known as either an Entire Agreement Clause, an Integration Clause or an Entirety Clause. By signing a policy document that contains this clause, the policy owner is agreeing that no prior communications in any form whatsoever form part of the contract or affect the duly executed written contract’s terms and conditions.
A Sample Entire Contract Clause
An example of a typical Entire Contract Clause will be: “This agreement constitutes the entire agreement between the parties pertaining to the subject matter hereof, and supersedes in their entirety any and all written or oral agreements previously existing between the parties with respect to such subject matter.” The specific wording used by Entire Contract Clauses will obviously differ slightly from contract to contract but all versions will basically say exactly the same thing.