Who makes the legally enforceable promises in a unilateral insurance policy?

In a unilateral insurance policy, the legally enforceable promises are made by the insurance company. This means that the insurer is the party that is responsible for fulfilling the obligations outlined in the policy, such as paying out claims and providing coverage as specified in the agreement. The essential characteristic of a unilateral contract is that only one party – in this case, the insurance company – makes a legally binding promise.

The policyholder, while they may have responsibilities under the contract (such as paying premiums), does not make enforceable promises to the insurer in the same manner. The applicant, who might be someone seeking insurance, could also be viewed as a potential policyholder but does not create binding promises until the policy is issued. The role of the state regulator is to oversee insurance practices and ensure compliance with laws but does not involve making promises within the context of a specific insurance contract.

Thus, understanding that unilateral insurance policies are characterized by the insurer's commitments helps to clarify the nature of contractual relationships in insurance practices.