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Contract

A contract is an agreement between two parties, typically in writing, legally binding both the involved parties to its terms and conditions. 

An insurance policy is a legal contract between the policyholder and the insurer. The policy document lays down all the terms and conditions binding the insurer and the policyholder. The policyholder agrees to pay certain amounts to the insurer as premiums, and the insurer agrees to provide certain benefits to the policyholder within a specified period, as per the terms and conditions of the policy.

 

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