Final answer:
The insuring agreement does not include exclusions, which are detailed in a separate part of the insurance policy. It outlines perils insured against, persons and property covered, and the coverage location.
Step-by-step explanation:
The insuring agreement typically includes details such as the perils insured against, the persons and property covered, and the location where coverage is applicable. However, it does not usually contain exclusions; these are normally listed in a separate section of the policy. The insuring agreement is a fundamental component of an insurance contract and is essential for defining the scope of coverage provided by the insurer.
Understanding the insuring agreement is crucial because it articulates the promises made by the insurer to the insured. When considering the fundamental law of insurance, it's clear that the costs associated with these promises (coverage for claims) must be balanced with the premiums collected, operational expenses, and profit margins for the insurance company. This balance ensures that the average person's payments into insurance are sufficient to support the financial structure of the insurance firm while providing the agreed-upon protections to the policyholders.