Contract & Policy

Contract (legal concept)

“Contract” refers to the legal agreement between the insurer and the policyholder.

• It is the legal relationship creating rights and obligations.
• It exists once offer, acceptance, consideration, and consent are met.
• Used in legal analysis, legislation, and doctrine.

Policy (insurance instrument)

“Policy” refers to the written insurance document that evidences and formalises the contract.

• It includes the policy schedule, terms and conditions, endorsements, etc.
• It is the operative document used in practice.
• Preferred in insurance drafting and operational clauses.

The policy may be individual or group-based, subscribed by an association for the PER (French Retirement Savings Plan).