What defines an insurance policy as a personal contract?

An insurance policy is defined as a personal contract primarily because it is valid only for the individual insured. This means that the coverage, terms, and obligations of the policy are tailored specifically to the person named in the contract. The principles of insurable interest and underwriting are based on the unique risks associated with that individual, which is why the policy cannot typically be transferred to another person without the insurer's consent.

In relation to the other choices, while consent from all parties is often a requirement in many contractual agreements, this doesn't specifically describe the essence of an insurance policy as a personal contract. Additionally, transferring the policy without consent contradicts the personal nature of such contracts. Lastly, insurance policies that allow for business entities to insure property are generally classified as commercial contracts, which further distinguishes them from personal contracts designed for individuals. Thus, the defining characteristic of a personal contract in insurance is its validity solely for the individual insured.