AS -26

I think it should be a favourable contract for insurance company where it expects favourable situation.. that is more inflow in the form of premium then outflow in the form of cliam..

however I have a doubt as contract is not binding as policyholders can surrender.. so you don't have control over the same.. so it can't be your asset.. but I can't come up with other suitable example

That'd be a contingent asset for the insurance company ,wouldn't it?

No it will become a financial asset if a contract is favourable to you... but I am not sure..