General Insurance PrinciplesQuestion 186 of 716
Which characteristic of an insurance contract means that only the insurer makes a legally enforceable promise?
a.Conditional
b.Aleatory
c.Bilateral
d.Unilateral
Explanation
An insurance contract is unilateral because only the insurer makes a legally enforceable promise. The insured is not required to pay future premiums but loses coverage if they stop. Insurance contracts are NOT bilateral.
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PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)