MANAGEMENT

Detailed explanation-1: -In general, an insurance contract must meet four conditions in order to be legally valid: it must be for a legal purpose; the parties must have a legal capacity to contract; there must be evidence of a meeting of minds between the insurer and the insured; and there must be a payment or consideration.

Detailed explanation-2: -In insurance, the insurance policy is a contract (generally a standard form contract) between the insurer and the policyholder, which determines the claims which the insurer is legally required to pay.

Detailed explanation-3: -Insurance contracts are aleatory contracts because the amount exchanged by the parties is unequal and depend upon future uncertain events. Insurance agreements are also considered unilateral contracts because only the insurance company is making a legally enforceable promise.

Detailed explanation-4: -Insurance is a legal agreement between two parties – the insurer and the insured, also known as insurance coverage or insurance policy. The insurer provides financial coverage for the losses of the insured that s/he may bear under certain circumstances.

Detailed explanation-5: -A document containing terms and conditions of insurance contract is called policy.