What does Aleatory Contract mean? Read on to discover the definition & meaning of the term Aleatory Contract - to help you better understand the language used in insurance policies.
An agreement concerned with an uncertain event that provides for unequal transfer of value between the parties. Insurance policies are aleatory contracts because an insured can pay premiums for many years without sustaining a covered loss. Conversely, insureds sometimes pay relatively small premiums for a short period and then receive coverage for a substantial loss.
We hope the you have a better understanding of the meaning of Aleatory Contract.