Which of the following is also known as contract of?
Answer: Explanation:Since payment of compensation is assured by the Insurance Company that is why contract of Life Insurance is considered as a contract of Assurance.
Why insurance is called assurance?
What is the Meaning of Assurance? The term assurance is used in the insurance industry that to in terms of life and term insurance policies. In a life insurance policy, the policyholder is given assurance that he will receive compensation in case of a certain event like death or disability.
What is an assurance in insurance?
What Does the Term "Assurance" Mean? In the insurance sector, the phrase assurance refers to both life and term insurance contracts. In a life insurance policy, the policyholder is guaranteed compensation in the event of a specific occurrence, such as death.
What type of contact is an insurance contract?
Insurance contract : meaning\n\n In this type of contract, the insurer promises the insured party that he will save or indemnify him from losses caused by a particular contingent event, on the payment of an amount called premium.
What is insurance contract?
Insurance may be defined as a contract between two parties whereby one party called insurer undertakes, in exchange for a fixed sum called premiums, to pay the other party called insured a fixed amount of money on the happening of a certain event. The insurance, thus, is a contract whereby Certain sum. called premium, is charged in consideration
What is the difference between insurance and assurance?
In the case of insurance, the reimbursement of the loss or damage will be paid only on the occurrence of the uncertain event. Conversely, in assurance, the insurable amount is paid either on the death of insured or at the maturity of the policy. The duration of insurance is only one year, in essence, the policy is renewed on the expiry of the term.
What is an insuring agreement in insurance?
The insuring agreement is the section of an insurance contract containing the obligation of the insurer to pay covered claims, subject to specified conditions and exclusions. It contains the insurance company's promise to pay for loss, if it should result from the perils insured against. A policy may be amended only with a(n): A) warranty.