2.2.3 Unilateral
Unilateral is the distinguishing characteristic of an insurance contract in that it is only the insurance company that pledges anything.
A unilateral insurance contract obligates only one party (the insurer) in the contract; the distinctive element that grants the policyowner the right to terminate the policy at any time and prohibits the insurer from doing so (unless premium payments are not being made).
In a bilateral contract, both parties make legally enforceable promises.
