What is the term for the value that each party gives to the other in an insurance contract?

In an insurance contract, the term for the value that each party gives to the other is "consideration." This is a fundamental concept in contract law, which requires that both parties involved agree to exchange something of value in order to create a binding agreement. In the context of insurance, the policyholder provides consideration in the form of premium payments, while the insurer provides consideration by agreeing to cover certain risks as specified in the policy. This mutual exchange is essential for the formation of the contract, making it enforceable.

The other terms presented do not correctly define this concept. The premium refers specifically to the payment made by the insured to the insurer, but it does not encompass the insurer's obligation to provide coverage. Indemnity relates to the principle of restoring the insured to the financial position they had before a loss, not to the exchange of value in the contract. Obligation refers to the duty of each party under the contract but does not capture the exchange aspect inherent in the definition of consideration.