Offer and acceptance
Capacity to pay premiums
Consideration
Capacity of the parties
✅ The correct answer is B.
All of the following are elements of a valid contract, except Capacity to pay premiums. It is calculated as the total value of all claims paid by the company divided by the total amount of premium collected in a financial year.
All of the following are elements of a valid contract, except Capacity to pay premiums. It is calculated as the total value of all claims paid by the company divided by the total amount of premium collected in a financial year.