Which of the following best describes a unilateral insurance contract?

A unilateral insurance contract is defined by the fact that only one party makes a binding promise, while the other party does not have a reciprocal obligation to perform. In the context of insurance, this means that the insurer is the only party that makes a promise to pay for covered losses as specified in the policy, while the insured party's responsibilities are contingent on them fulfilling certain conditions, such as paying premiums or providing truthful information.

This type of contract is distinct because the insured does not promise to do anything in return for the insurer's promise to cover claims; the insured may choose to file a claim or not, and their actions do not affect the initial promise made by the insurer. The unilateral nature highlights that the risk is largely borne by the insurer, making it imperative for them to adhere strictly to the terms of the policy they have issued.

In contrast, a bilateral contract would require both parties to make promises that are enforceable, which is not the case here. The other options do not accurately reflect the fundamental principle of a unilateral insurance contract: responsibility lies predominantly with the insurer, making the option that focuses on a single binding promise from one party the correct choice.