Final answer:
Insurance policies are two-party contracts, while bond transactions commonly involve three parties: the issuer, the investor, and the trustee.
Step-by-step explanation:
Most insurance policies are considered as two-party contracts involving just the insured and the insurer. In contrast, bond transactions usually involve three parties. These are the issuer (who creates the bond), the investor (who buys the bond), and often a trustee (who acts in the investors' interests, mostly in the case of default). Bonds are effectively a form of borrowing where the issuer is indebted to the holder, and the trustee ensures that the terms of the bond are adhered to and the investors' interests are protected.