What does the "age of majority" refer to in insurance contracts?

The term "age of majority" refers to the age at which an individual is legally recognized as an adult and has the capacity to enter into binding contracts without the need for parental or guardian consent. In the context of insurance contracts, this generally means that individuals who have reached this age, which is typically 18 or older in most jurisdictions, can independently purchase insurance policies, make changes to those policies, and fully understand and consent to the terms and conditions outlined in the contract.

Understanding the age of majority is crucial in the insurance field because it determines when a person can be responsible for their own financial decisions regarding insurance matters. This includes the ability to apply for policies, change or amend existing policies, and receive benefits without the involvement of another party. Thus, the correct answer accurately reflects this legal concept.