A mercantile instrument in writing, by which one party, in consideration of a premium, engages to indemnify another against a contingent loss, by making him a payment in compensation, whenever the event shall happen by which the loss is to accrue. 2 Steph. Comm. 172. The written instrument in which a contract of insurance is set forth is called a "policy of insurance." Civ. Code Cal.
Written and fact checked by The Law Dictionary