C3-L1-P1

Contracts

Life and Health Insurance, and Annuity contracts are called policies. However, they are legal, binding contracts. As such, they are governed by the same principles of law that apply to any contract.

If you will think all through this course and during the examinations of the insurance vehicle as a contract, it will help you to answer many of the questions by asking yourself "If this situation involves a binding contract would this or that be possible?"

First, we will study the 4 elements that are required in any business contract.

Then, we will analyze how the insurance contract either differs or is the same as any other business contract.

The following question is a review of the content on this page. Answer it and then click below to check your response.

Insurance policies are considered business contracts.