Which of the following is not a requirement for a valid insurance contract?

For an insurance contract to be valid, it generally must include several key elements: consideration, insurable interest, and competent parties.

Consideration refers to something of value that is exchanged between the parties, which is essential for forming a contract. Insurable interest ensures that the policyholder stands to suffer a financial loss from the insured event occurring, which is a legal requirement for most insurance policies. Competent parties indicates that all parties entering into the contract must have the legal capacity to do so, meaning they must be of legal age and sound mind.

The notion that a written agreement is not a requirement for a valid insurance contract can be seen in the context of verbal agreements; while written contracts are common and provide a clear record of the agreement, in many jurisdictions, insurance contracts can be valid even if they are oral. Therefore, the absence of a written agreement does not diminish the validity of an insurance contract as long as the other essential elements are present. This distinguishes it from the other options, which are indeed necessary components of a valid insurance contract.