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

An insurance policy and a contract of insurance are similar terms that refer to a legally binding agreement between an insurance company and a person or business seeking insurance. The main difference between an insurance policy and a contract of insurance is that an insurance policy is a document that outlines the details of the agreement between the two parties, while a contract of insurance is the actual agreement itself. An insurance policy typically contains information such as the type of coverage provided, the limits of coverage, and the deductible amount. It also typically states the rights and duties of both the insurance company and the insured person or business. The policy also outlines the claims process and any other important information regarding the insurance policy itself. A contract of insurance, on the other hand, is the actual agreement made between the insurance company and the insured person or business. It typically outlines the specific details of the insurance agreement, such as the premium amount, coverage limits, and exclusion details. It can also include specific clauses governing the relationship between the two parties, such as how long the policy will remain in effect and what happens if the policy is canceled. In Oregon, insurance policies and contracts of insurance must comply with the state’s insurance laws. Both policies and contracts must also be approved by the Oregon Department of Insurance before they can take effect.

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

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