What are the prescribed contracts in personal insurance?

The correct answer highlights that prescribed contracts in personal insurance refer to types of insurance contracts that are established to meet minimum standards set by regulatory bodies. These minimum standards ensure that the policies offer a basic level of coverage that is deemed necessary for the protection of consumers.

Prescribed contracts typically include essential coverage elements that align with legal requirements, helping to safeguard the policyholder's interests. This regulatory framework helps maintain a level of fairness and adequacy in the industry, ensuring that consumers have access to at least a baseline level of protection.

By focusing on minimum standards, these contracts also help prevent the sale of inadequate policies that could leave individuals underinsured in the face of unexpected events, thereby fostering greater trust in the insurance market. Other options do not correctly capture the regulatory intent behind prescribed contracts; for example, the notion of contracts that cannot be customized or those exclusive to high-risk individuals does not reflect the crucial aspect of meeting minimum standards for consumer protection.