General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A dispute over whether an insurer must pay a claim under the terms of a life policy is governed primarily by:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
An insurance policy is a contract, so disputes about coverage, conditions, and benefits are decided under contract law principles — offer, acceptance, consideration, and performance of promises. Tort law governs civil wrongs such as negligence, which is not the basis of a claim-payment dispute. Recognizing whether a matter sounds in contract or tort determines which rules and remedies apply to the dispute.
Why the other options are wrong
- A) Tort law addresses civil wrongs such as negligence or defamation; a policy claim is about a contractual promise to pay.
- B) Criminal law concerns offenses against the state; a coverage dispute is a private civil matter.
- D) Probate law administers estates and wills; it does not govern the enforceability of an insurance policy promise.
Memory hook
Policy promises = contract. Negligence and harm = tort. Match the claim to the correct legal bucket.