Define a Unilateral Contract in terms of insurance.

In the context of insurance, a unilateral contract refers to a scenario where only one party—the insurance company—has specific obligations that must be fulfilled based on the terms of the policy. This means that once the policyholder pays the premium, the insurer is obligated to provide coverage as specified, while the policyholder does not have reciprocal obligations beyond the initial agreement to pay the premium.

This concept emphasizes that the insurer is the only party committing to perform (i.e., to pay out claims, provide coverage, etc.), while the policyholder generally does not have to fulfill any further obligations for the benefits to apply. The nature of unilateral contracts makes them a unique aspect of insurance, distinguishing them from bilateral contracts where both parties have mutual obligations.