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Insurance Contract

In: Business and Management

Submitted By lowenko
Words 689
Pages 3
Insurance contract Student’s name School name

INSURANCE CONTRACT
The term Insurance can be defined as a transfer of risk whereby the insurer undertakes to compensate the insured in the occurrence of events that is harmful to health, rights or property of the insured person. An insurer is a company that is selling the insurance services to the insured. On the other hand, the insured is the entity or a person who buying the insurance policy. Premium is the amount of money that is charged for insurance coverage.
The term contract can be defined as an agreement involving two or more parties to do or to refrain from doing a certain act, with the aim of creating a legally binding relationship.
Therefore, an insurance contract is a legally binding unilateral agreement whereby the insurer accepts insurance risk from the policyholder by agreeing to indemnify the policyholder in case the occurrence the insured incident adversely affects the insured person.
The Insurance Policy
Insurance policy is an agreement between the insurer and the policyholder which portrays the claim in which the insurance company is supposed to pay the insured. The insurance contract is proofed by a signed policy document that is provided by the insurance company. The insurance policy must have details regarding the terms and conditions of the insurance contract, the place and date of issue.
Whenever the contract is governed by general or special insurance terms and conditions, the insurer shall note this in the section of the insurance policy where the individual details of the contract appear, and provide the aforesaid general or special terms and conditions to the Insured together with

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