Aleatory contract

Contract that may or may not provide more in benefits than premiums paid. For example, with only one premium payment on a property policy an insured can receive hundreds of thou­sands of dollars should the protected entity be destroyed. On the other hand, an insurance company can collect more in premiums than it ever pays out in benefits, as in a fire insurance policy under which the pro­tected property is either damaged or destroyed. Most insurance contracts are aleatory in nature.

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