What is the difference between an insurance policy and a contract?

An insurance policy and a contract are two different legal documents. An insurance policy is an agreement between an insurance company and a policyholder. It guarantees that, in exchange for the premium payments made by the policyholder, the insurer will provide certain benefits or pay out money in case of certain events, such as a car accident or a death. A contract, on the other hand, is a legally binding agreement between two or more parties. It can be written or implied, and is generally used to clarify and enforce the rights and duties of all parties involved. Generally, contracts are used to determine the terms of a transaction between two or more parties. The main difference between an insurance policy and a contract is that an insurance policy is designed to pay out money or provide certain benefits if certain events happen, while a contract is used to set the terms and conditions of a transaction between two or more parties. An insurance policy is designed to protect the policyholder against certain risks, whereas a contract is used to clarify and enforce the rights and obligations of the parties involved in the transaction.

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What is the difference between an insurance policy and a contract?

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