Which of the following are key components of an insurance contract?

The key components of an insurance contract fundamentally include offer, acceptance, consideration, and legal purpose. These elements are essential in establishing a valid and enforceable agreement between the insurer and the insured.

• Offer refers to the proposal made by the insurer to provide coverage under specific terms. This offer sets the stage for the contractual agreement.
• Acceptance occurs when the insured agrees to the terms of the offer, indicating their willingness to enter the contract.
• Consideration involves the exchange of something of value between the parties, typically the insured paying a premium in return for the coverage provided by the insurer.
• Legal purpose ensures that the contract is for a lawful objective, meaning that the coverage cannot be for illegal activities or intents.

These elements are foundational in contract law and must be present for an insurance agreement to be valid. This is why the first option is recognized as the correct answer in this context. The other options, while containing relevant terms associated with insurance, do not encapsulate the fundamental elements required for a legal contract.