What does the term "contractual right" refer to in the context of insurance?

The term "contractual right" in the context of insurance refers to the rights that both parties possess under the insurance agreement, which includes both the insurer and the insured. This concept emphasizes that the insurance contract is a mutual agreement where each party has specific rights and obligations stipulated in the policy.

For the insurer, contractual rights might include the right to collect premiums, the right to underwrite policyholders based on their risk profile, and the right to deny claims for reasons laid out in the policy. On the other hand, the insured holds rights such as the right to receive benefits upon meeting the terms of the policy, the right to have personal information handled in accordance with privacy laws, and the right to cancel the policy under specific conditions.

This mutuality is essential for the proper functioning of the insurance relationship, as it outlines the expectations and protections afforded to both sides. Therefore, recognizing that these rights form a balanced framework is crucial for understanding how insurance contracts operate within legal and ethical guidelines.