Which of the following best describes an insurance contract?

An insurance contract is fundamentally a legal document that clearly lays out the terms and conditions under which the insurance coverage will be provided. It specifies the obligations of both the insurer and the insured, detailing what is covered, what is excluded, the duration of coverage, premium amounts, and any other pertinent terms. This clarity in outline helps both parties understand their rights and obligations, making it a pivotal aspect of the insurance practice.

The other choices address various aspects of insurance but do not encapsulate the essence of an insurance contract. A summary of all potential risks might give a broad understanding of what could happen, but it doesn’t detail the specific terms of coverage provided by an insurance policy. A point of sale agreement for immediate coverage suggests a transactional nature that isn't representative of the formal and detailed agreements encapsulated in an insurance contract. A record of previous claims could provide insight into the history of a policyholder but does not define the contractual relationship established by a new insurance policy.