Most states require that an applicant for insurance be which of the following?

In the context of insurance applications, most states set a minimum age requirement that applicants must meet to enter into a contract and understand the terms and conditions adequately. Generally, this age is 18 years old, which is recognized as the age of majority in many jurisdictions, allowing individuals to have the legal capacity to enter into binding agreements, including insurance contracts.

Being 18 or older ensures that the applicant can comprehend their responsibilities and rights as policyholders, making them accountable for their choices. Therefore, this criterion is crucial for the insurance industry, as it protects both the insurer and the insured.

The other options listed do not reflect common regulatory requirements for applicants. For instance, being a non-resident usually pertains to specific types of coverage or permits rather than a standard application requirement. Claims of incapacity, such as not being able to hold a job, do not typically factor into the eligibility criteria for obtaining insurance. Similarly, having a history of prior licenses isn’t a standard requirement for all applicants; rather, it applies to professionals, such as agents or brokers, not to individual insurance applicants.