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

The difference between an insurance policy and an insurance contract is an important one to understand in the state of California. An insurance policy is a document that outlines the details of an insurance agreement, such as the terms, conditions, and benefits, between an insurance company and the insured. It will typically include information such as the type of coverage offered, the limits of coverage, and any applicable exclusions. An insurance contract, on the other hand, is the actual binding agreement between the insurance company and the insured. This document will include the same information as the insurance policy, however, it will specify all of the details of the agreement, such as payment amounts, premium rates, and any other conditions that the insured may need to meet in order to receive benefits. The contract must also be signed by both parties in order to be legally binding. In California, insurance policies and contracts are governed by state law, so it is important to understand and follow the provisions of the policy or contract in order to be protected.

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

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