Age of Majority

• A minor can sign contracts in limited circumstances, but insurance companies do not permit minors to purchase insurance on their own. Some companies make exceptions for emancipated minors.
  
  

Insurable Interest

• You must have insurable interest in the person or property you insure. Insurable interest means that if damage, illness, injury or death occurred, you would suffer a financial loss.
  
  

Cognition

• Only a person who can read--unless the contract is read to him--and understand a contract may obtain a policy of insurance.
  
  

Sobriety

• An inebriated or otherwise impaired person cannot legally obtain an insurance policy. The person must wait until she is sober to accept the policy contract.
  
  

Considerations

• Only a person who remits consideration (policy premium payment) may obtain an insurance policy. Without consideration, the insurance contract does not exist.