General Insurance
Why is a life insurance policy described as unilateral?
Answer and explanation
Answer: A. A unilateral contract is one in which only one party gives an enforceable promise: the insurer promises to pay, while the owner may stop paying premium without being sued for it. Signature, drafting, and the number of lives covered are separate matters.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, unilateral contract
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