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

An insurance policy and an insurance contract are both legally binding agreements between an insurance company and an individual or organization. However, they have some important distinctions. An insurance policy is the written document that outlines the coverage, benefits, and other details of the plan. It is a formal, binding document that contains all the information needed for the insured individual to understand the coverage they have and how it applies to them. An insurance contract, on the other hand, is an agreement between the insurance company and the insured individual or organization. It is the document that outlines all the terms and conditions of the policy. This includes the amount of premium to be paid, the coverage provided and any exclusion clauses or exclusions that may apply. Overall, the main difference between an insurance policy and an insurance contract is that the policy is the actual document that outlines the coverage, while the contract is the agreement that governs the policy and outlines the exact terms and conditions that apply. In Texas, both documents are legally binding and must be signed by both parties in order for the agreement to be valid.

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

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