General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An insurance contract is said to be unilateral because:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A unilateral contract is one in which only one party — the insurer — makes a binding promise. The insured's duties, such as paying premiums and giving notice of claim, are conditions that must be met before the insurer's promise becomes payable, rather than enforceable promises themselves. This is why insurance is described as unilateral, as opposed to bilateral contracts where both sides promise performance.
Why the other options are wrong
- B) Mutual enforceable promises describe a bilateral contract; insurance is unilateral.
- C) The insurer is the party that promises to pay; the insured is not the only party bound — the insurer's promise is the binding core.
- D) The number of copies is irrelevant to the legal character of the contract.
Memory hook
Unilateral = one promise on the table. The insurer's word is binding; your duties are the keys to unlock it.