With respect to insurance, differentiate between Contracts of Assurance and Contracts of Indemnity.
1
Under Contracts of Assurance, the Benefit Payable is Determined, After the Event occurs.
2
Under Contracts of Indemnity, the Benefit Payable is Fixed in Advance.
3
Under Contracts of Assurance, the Benefit Payable is determined, Before the Event occurs.
4
Under Contracts of Indemnity, there is No Benefit Payable, if the Event occurs.
5
None of the Above.