Which type of contract is specifically binding between an individual and an insurer?

A personal contract is a type of agreement that is specifically binding between an individual and an insurer, emphasizing the unique relationship and circumstances surrounding the parties involved. In insurance, this contract is based on the personal characteristics and information of the insured individual, meaning that the insurer is taking on a risk that is unique to that person. This specificity reflects the understanding that insurance coverage is tailored to the individual’s particular needs, lifestyle, and risk profile.

For example, in life insurance, the contract is entered into considering factors such as the individual's health, age, and lifestyle. The insurer assesses these personal details to determine the appropriate coverage and premium, making the contract wholly reliant on the personal attributes of the insured.

Given this context, the other options—conditional, commutative, and aleatory contracts—do not focus on the specified personal relationship between the individual and the insurer. Conditional contracts, while present in insurance, generally refer to agreements that require certain conditions to be met before the contract is enforced. Commutative contracts involve mutual exchanges that are typically equal and are common in many types of agreements, but not specifically in the context of personal insurance relationships. Aleatory contracts are based on uncertain events, where one party may gain more than the other, but they