Third-party beneficiary principle

{
  "id": "MLC-T-INS-003320",
  "term": "Third-party beneficiary principle",
  "field": "Insurance and risk management",
  "definition": "A legal doctrine allowing a person who is not a party to a contract to enforce its terms if the contract was made for their benefit. In insurance, this principle enables a designated beneficiary, such as a spouse or child, to receive policy proceeds even though they did not sign the original contract. This is commonly applied in life insurance policies where a beneficiary is named.",
  "url": "https://mlchart.com/terminology/insurance/third-party-beneficiary-principle/"
}