General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
An insurance policy is a matter of contract law rather than tort law because:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Contract law governs obligations created by a voluntary agreement between parties, built on offer, acceptance, consideration, and mutual promises. Tort law governs duties imposed by society, such as the duty to exercise reasonable care toward others. An insurance policy is formed by the mutual agreement of the insurer and the insured, so it is governed by contract law rather than by tort law. Breach of the agreement is a contract dispute, not a tort claim.
Why the other options are wrong
- A) Physical injury is a tort concept related to negligence; insurance contracts frequently involve no injury at all.
- B) Consideration is essential to an insurance contract: the insured pays premiums and the insurer promises to pay benefits.
- D) Courts interpret many kinds of disputes; interpretation by a court does not make a matter tort law.
Memory hook
Contracts are promises you make; torts are duties you owe.