what is the differnce between insurance policy and contract of insurance?

Answer 1

They're the same thing

Answer 2

A contract, in it's simplest form, is a binding agreement between two or more parties for the doing or not doing of certain things. The agreement can be written, oral or implied i.e. if you start pumping gas in your tank before you pay for it, you imply that you agree to pay the price that registers at the pump. You cannot say after you finish pumping that you never agreed to pay. Technically the contract of insurance is anything which indicates that the parties intended on entering an agreement, which is not necessarily the policy, as the purpose of the policy is to explain in detail the specific coverages, exclusions, conditions, etc. The evidence of an agreement is usually the application for insurance (especially for auto insurance), but for some types of property insurance, there is no application. Therefore a broker/agent will issue an insurance binder, which states, in consideration of the premium which has been paid or agreed to be paid by the insured (I don't know of any broker who will issue a binder without some sort of payment being made), what is being insured, general policy limits, who it is being insured by, when the policy begins and any lienholders, mortgagees or lessors whose interests are being added to the policy. The broker, as a representative of the insurer, binds the risk to the insurer, however the binder does not indicate all of the coverages, limits, exclusions, declarations, etc. as the binder would the size of a magazine, and considering lawyers are usually waiting for a binder to help close a real estate deal where financing is involved, they wouldn't appreciate receiving a 45 page fax just to say a house is insured! That is what the job of the policy would be. The policy amplifies the application or binder. The policy contains all the information contained in the application, and then amplifies it by including, in detail, all of the coverages, limits, exclusions, declarations, wordings, etc. that both the insured and insurer agree to. Most people do not read their policies, and therefore the are unaware of what eactly their duties and responsibilities are. Read your policy folks! Leave it in the bathroom and read a small section at a time when you using the facilities. Just because you didn't read it doesn't mean you not responsible for it. If the policy differs from the application, the insurer is required to give written notice of the changes and the reason why. In some rare cases, however, the policy is the only evidence of the contract, although as an insured you should have some sort of receipt that a payment was made, or something in writing (even if it's only an email!) as to what is being insured and, generally, what is being insured for.

Answer 3

There isn't one - an insurance policy IS a contract of insurance.