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

An insurance policy and an insurance contract are two distinct legal documents that are used to outline the terms of an insurance agreement. While both documents are similar, they have some key differences. An insurance policy is a written document that provides a summary of the coverage and details of the contractual agreement between the insured and the insurer. The policy outlines the risks that are covered, the details of the coverage, and the insurance premiums that are due. A policy does not create any contractual obligations between the parties involved, but rather serves as a means of communication between the insurer and the insured. An insurance contract, on the other hand, is a legally binding agreement between the insured and the insurer. The contract lists all of the duties and obligations of the parties involved and also outlines the specific details of the coverage, including the amount of coverage, the term of the policy, and the details of the premiums. A contract creates a binding relationship between the parties, and any changes made to the contract will be legally binding. While both an insurance policy and an insurance contract are important documents when it comes to securing an insurance agreement, the key difference between the two is that a policy is only a summary of the agreement while a contract is a legally binding agreement between the parties involved.

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

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