Final answer:
A counteroffer is NOT an essential element of an insurance contract because it represents a new offer that restarts negotiations, whereas the essential elements include consideration, agreement, and legal purpose.
Step-by-step explanation:
The essential elements of an insurance contract include offer and acceptance, consideration, a competent party, legal purpose, and insurable interest. The question asks which of the following is NOT an essential element of an insurance contract: counteroffer, consideration, agreement, or legal purpose.
Among the options given, a. counteroffer is NOT an essential element of an insurance contract. While an offer and an acceptance are required to form an agreement, a counteroffer is a rejection of the original offer paired with a new offer, which restarts the negotiation process rather than forming an essential part of the contract itself. In contrast, consideration (the value exchanged in the contract), agreement (offer and acceptance), and legal purpose (the contract must be for a legal undertaking) are all essential elements.