What best describes a personal contract in insurance?

A personal contract in insurance is defined by its dependence on specific individuals rather than being applicable to entities or physical assets alone. This concept emphasizes that the terms and conditions of the contract are tailored to the unique characteristics and circumstances of the individual insured. For example, a personal auto insurance policy is designed based on the driving record, claims history, and other personal factors of the individual policyholder, which is key to understanding the nature of these contracts.

Moreover, personal contracts typically cannot be transferred or assigned to another person without the insurer's consent, further reinforcing the concept that they are deeply tied to the individual insured. This characteristic distinguishes them from commercial contracts, which can involve corporations and may have different terms regarding assignment and transferability.

The other options suggest characteristics that do not apply to personal contracts. They either imply a broad applicability to corporate entities, unrestricted sale to anyone, or limitation to physical assets, none of which align with the personal nature of these insurance contracts.