What is a characteristic of a personal contract?

A personal contract is characterized by its focus on insuring individuals rather than merely covering specific assets. This means that the terms of the contract are designed to address the needs and risks associated with the person named in the policy, rather than being tied solely to property or physical items.

In the context of insurance, this personal connection highlights that the coverage extends to the individual’s overall risk profile, including factors such as their health, occupation, and lifestyle. Consequently, the contract is highly tailored to the specific circumstances of the insured, reflecting their unique needs and exposures.

The other choices do not accurately represent this defining feature of personal contracts. For instance, many personal contracts cover various risks beyond property damage, such as liability or health risks. Personal contracts are typically non-transferable, designed to maintain the relationship between the insurer and the insured, and they do not generally require a witness for validation, as the terms are legally binding upon agreement. Thus, the focus on insuring a person rather than just an asset is the key characteristic that distinguishes personal contracts.