Which of the following statements about legal capacity in insurance contracts is true?

The statement that only adults can enter into contracts is accurate because, in legal terms, individuals must have the requisite capacity to understand the nature and consequences of the contract they are entering. Generally, this means that only persons who have reached the age of majority, which is typically 18 years old in many jurisdictions, are considered capable of creating binding contracts. This ensures that the parties involved can adequately understand the legal commitments they are making.

In contrast, minors can enter into contracts, but these contracts are often subject to restrictions and may be voidable at the minor's discretion, which does not allow for unrestricted engagement in contractual agreements. Additionally, stating that anyone can enter into a contract fails to take into account the necessity of legal capacity, which pertains to an individual's ability to understand the contract. As a result, legal capacity is indeed a crucial consideration in the formation of valid contracts.