What constitutes an "insurance policy" in Massachusetts?

In Massachusetts, an insurance policy is defined as a written contract that outlines the coverage terms between the insurer and the insured. This means that the policy clearly specifies the rights and obligations of both parties, including what is covered, the limits of coverage, the duration of the contract, and the conditions under which the policy can be modified or terminated.

Having a written document is crucial for two main reasons: it provides legal clarity and protection for both the insurer and the insured, and it ensures that there is a formal record of the agreement's terms. This is essential in resolving disputes or claims that may arise later, as both parties can refer to the terms laid out in the contract.

The other options, while suggesting various forms of agreements, do not meet the legal standard required for an insurance policy. A summary of the insured parties' history does not define coverage or obligations. Verbal agreements lack the formal structure of a contract and are harder to enforce legally. An informal understanding does not provide the necessary details or legal framework to serve as a valid insurance policy. Thus, the correct answer highlights the necessity of having a formally documented agreement.