Are Insurance Policies Executory Contracts?

Unexpired insurance policies, where the insurer has a continuing obligation to provide coverage and the debtor has a continuing obligation to pay stan- dard premiums, are executory contracts.

Are insurance contracts executory contracts?

Insurance policies are only executory when the policy period is still in force and there are outstanding premium amounts owed by the debtor. If the debtor elects to assume the policy, it will have to become current on all obligations owed under the policy.

What type of contract is an insurance policy?

Most insurance policies are unilateral contracts in that only the insurer makes a legally enforceable promise to pay covered claims.