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In an insurance contract, consideration refers to what each party gives up to form the contract. In this context, for the insured, the consideration is typically the premium payments they make to the insurer in exchange for coverage. This exchange establishes the lawful agreement between the two parties, as the insurer provides coverage in return for the premiums paid by the policyholder.

Other options do not serve as consideration in the same way. Coverage limits describe the maximum amount the insurer will pay but do not constitute an exchange between the parties. Claims history refers to the past claims made by the insured and might impact future premiums or coverage but is not a part of the contractual consideration at the outset. Beneficiary designations specify who receives the policy benefits upon the insured’s death, which is a directive within the policy rather than an exchange or consideration between the policyholder and the insurer. Thus, premium payments remain the key form of consideration in an insurance contract, solidifying the agreement's basis.