Assurance Contract

Assurance coverage associated with an event that is certain to happen. Assurance resembles insurance (and sometimes the terms tend to be interchangeable) except in which insurance protects policyholders from events that will happen. Assurance contract, also known as a provision point mechanism, is an activity theoretic mechanism and also a financial technology in which facilitates the non reflex creation of general public goods and club goods facing the free riders problem.