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

An insurance policy and a contract of insurance are two different types of legal documents, though they are closely related. A contract of insurance is an agreement between the insurer and the insured. It outlines the terms and conditions of the insurance, including conditions that must be met for coverage to be valid, the limits of coverage, and any exclusions. The policy sets out the specifics of a particular type of insurance and how it will be applied to the insured if a claim is made. A policy of insurance, on the other hand, is the actual document that outlines the specifics of the insurance, including the terms and conditions of the policy. It is typically issued by the insurer to the insured, and contains the legal terms of the coverage. It outlines the provisions of the coverage, such as the amount of coverage, duration, exclusions, and costs associated with the policy. In New Jersey, any agreement for the sale of insurance must be in writing and signed by both the insured and the insurer. This means that any insurance policy offered in New Jersey must have a contract of insurance, as well as a policy of insurance. These documents provide the legal protection the insured needs in the event of a claim.

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

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