Answer to Question 1
D
Answer to Question 2
There must be an offer, acceptance and consideration. The owner must have legal capacity; that is, he must be an adult of sound mind. Fraud, duress, and undue influence invalidate a policy. In theory, insurance contracts need not be in writing because the Statute of Frauds does not apply to any contract that can be performed within one year, and it is possible that the house may burn down or the car may crash within a year. Some states, however, specifically require insurance contracts to be in writing.