"A valid contract involves each party giving something of value. This exchange of value, or consideration, may take the form of money, action, or promise. For insurance contracts, the insured's…

“A valid contract involves each party giving something of value. This exchange of value, or consideration, may take the form of money, action, or promise. For insurance contracts, the insured’s consideration is the payment or premiums and a promise to fulfill the conditions of the contracts, and the insurer’s consideration is the promise to pay after a loss occurs.” This is related to an element in an insurance policy contract. It is known as: