What is required for an insurance policy to be enforceable?

An insurance policy is enforceable when it includes mutual consent, a lawful object, and consideration. Mutual consent refers to both parties agreeing to the terms of the contract, which is crucial in forming a valid agreement. A lawful object means that the contract must be for an acceptable purpose and not violate any laws. Consideration involves something of value exchanged between the parties, typically the payment of premiums in insurance contracts, which is essential for the agreement to be binding.

This foundational principle ensures that all parties have a clear understanding of their rights and obligations, creating a legal framework for the insurer and the insured. Without meeting these criteria, an insurance policy may lack enforceability in a court of law.

The other options do not encompass all necessary elements for enforceability. While written documentation is often required for clarity and may be helpful in legal disputes, it does not alone ensure enforceability. Approval from a regulatory authority relates more to compliance with legal standards rather than the enforceability of a contract. Payment of premium is important, but it is just one component under the broader requirement of consideration, and by itself, does not establish an enforceable contract.