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Life & Health · Chapter 3 · Contract Characteristics

Unilateral Contract

Definition
Only one party (the insurer) makes an enforceable promise. The insured never promises to pay premiums — the insurer simply cancels if unpaid.
Easy to confuse with

These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.

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Verified against primary sources · 2026-08-10