Insurance contracts are characterized by which of the following features?

Insurance contracts are classified as unilateral because one party, typically the insurer, is obligated to fulfill the terms of the contract once the premium is paid. This means that the insurer promises to provide coverage or pay claims as needed while the insured's only obligation is to pay the premium. This characteristic is fundamental to the nature of insurance, distinguishing it from bilateral contracts where both parties have mutual obligations to each other.

In the context of insurance, the insured provides consideration in the form of premium payments, but the insurer exclusively assumes the risk and is responsible for claims. This creates a one-sided obligation where only the insurer is legally bound to act, contingent on the occurrence of an insured event. Recognizing this aspect is essential for understanding the dynamics of insurance agreements, especially from the perspective of the obligations and rights of the parties involved.