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In this tutorial, you learn key legal concepts of insurance contracts. An insurance policy is defined as a legally binding agreement between parties, which requires four essential elements: offer, acceptance, consideration, and legal purpose. The process begins with the applicant offering an application to the insurance company, which then accepts the offer upon approval by underwriters. Consideration involves the exchange of value: the insured pays a premium, while the insurance company promises to cover losses. Understanding these elements is crucial for successfully navigating insurance contracts.