General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
A dispute over whether an insurer must pay benefits promised in a policy arises under which body of law?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
An insurance policy is a contract, so a dispute over whether benefits are due under its terms is resolved under contract law. The insurer's promise to pay and the insured's obligation to pay premium create mutual contractual duties. Breach of those duties is a contract claim, distinct from tort claims based on duties imposed by law rather than agreement.
Why the other options are wrong
- B) Tort law governs duties imposed by law, such as negligence; the insurer's duty here arises from the policy agreement.
- C) Criminal law addresses offenses against the state, not private benefit disputes.
- D) Maritime law applies to shipping and navigation, not to insurance benefit obligations.
Memory hook
Policy promises are contract territory; the paper itself picks the law.