L&HFloridamedium
Why is an insurance contract classified as unilateral?
AOnly the applicant signs the contract; the insurer is bound by its filings
Only the insurer makes a legally enforceable promise
COnly one peril is covered under any single policy
DOnly one party may sue to enforce the contract in court
Why this is the answer
An insurance contract is unilateral because legally enforceable promises run in only one direction: the insurer promises to pay claims, but the insured makes no enforceable promise to continue paying premiums. If the insured stops paying, the policy lapses — but the insurer cannot sue for unpaid future premiums. By contrast, if the insurer refuses to pay a valid claim, the insured can sue. The asymmetry is what defines unilateral. Per the Florida Agent's Health & Life Exam Content Outline §III.D.2.b.
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