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1 : protection or indemnification by an insurance policy [the policy provides extensive against burglary]
2 : a risk assumed by the terms of an insurance contract [the policy lists four s: liability, medical payments, uninsured motorists, and physical damage]
Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.