What quality must an insurance contract possess to be legally enforceable?

For an insurance contract to be legally enforceable, it is essential that there is a written agreement. The written form of the contract provides a clear, mutual understanding of the terms and conditions agreed upon by both the insurer and the insured. This clarity is crucial in ensuring that both parties are aware of their rights and obligations, reducing the likelihood of disputes.

In addition to being in writing, a legally enforceable contract must typically contain certain elements, including offer and acceptance, consideration, legal capacity, and a lawful purpose. While verbal agreements can sometimes be valid, they are much more challenging to enforce due to the lack of concrete evidence regarding the agreed terms.

The other choices do not meet the legal requirements for enforceability. Verbal assurances may hold some weight in informal agreements but lack the formality and proof needed in legal contexts. Unsigned documents are typically not binding as they lack the necessary agreement from both parties. Non-binding agreements, by definition, do not have the force of law and therefore cannot be enforced. Thus, a written agreement is foundational for the enforceability of insurance contracts.