Question

Insurance contracts are known as ____ because certain future conditions or acts must occur before any claims can be paid.

Answer 1

Insurance contracts are known as conditional contracts because certain future conditions or acts must occur before any claims can be paid.  In this case, the insurance contracts are conditional because the policy holder must follow their requirements such as paying for the policy before the insurance company does their end of the contract. If you do not pay for your insurance policy, the insurance company is not responsible for coverage.