What characterizes a unilateral contract in insurance?

In the context of insurance, a unilateral contract is characterized by being legally enforceable by only one party. This means that while the insurer makes a promise to pay for certain losses or damages in exchange for premiums, the insured does not have an equivalent obligation to perform in return. The insured must fulfill their part of the agreement, such as paying the premiums and providing accurate information, but the contract itself is primarily enforceable by the insurer.

This principle is fundamental to insurance contracts as it establishes that the insurer bears the risk and responsibility to fulfill the promise made in the policy, while the insured typically has no obligation beyond payment of premiums. The lack of mutual obligations differentiates a unilateral contract from other types of contracts where both parties are obligated to perform certain actions.