Insurance can be defined as a contract between two parties, whereby one party called an insurer is obliged to pay, in return for a fixed amount called a premium, to the other party called a fixed amount of money at the event of a particular event. The insurance contract is a legal contract that lays down the responsibilities of both the insurance company and the insured person, as well as the specific terms of cover and deadlines and costs of the police. Standard features of the insurance contract include bid and acceptance, compensation, legal capacity and purpose and compensation for damages. The content of the insurance contract depends on the type of police, what the applicant wants and how much he is willing to pay. The insurance policy details are covered by the Standard Insurance Policy. This article covers what is required by applicable insurance contracts, as only valid contracts are legally enforceable. Insurance contracts have an additional requirement to enter into legal form. Insurance contracts are governed by state law, so insurance contracts must comply with these requirements. A State may prescribe that only certain forms may be used for certain types of insurance or that the contract must have certain provisions. In addition, contracts must be approved by the state insurance department before they can be used to ensure they are in compliance with the regulations.