Skip Navigation Links IRMI Online > Glossary of Insurance & Risk Management Terms > Terms > A > aleatory contract
Warning! You are currently not signed in. Any products you have purchased will not be displayed until you Sign In

aleatory contract

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.

Navigation

Social Media