What is true about a unilateral contract in insurance?

In the context of insurance, a unilateral contract is a specific type of agreement where only one party makes a binding promise or legal commitment. In this case, the insurer is the party that makes promises, and after the premium is paid, the insurer is obligated to fulfill its promise to provide coverage.

This means that the insurer has enforceable obligations to pay claims or provide benefits as outlined in the policy terms. The insured, on the other hand, typically does not make enforceable promises; instead, the insured must abide by the terms of the contract without having a reciprocal legal duty to the insurer. Thus, it is correct to state that only the insurer has enforceable obligations after the premium is paid, which defines the nature of unilateral contracts in insurance.

The other choices do not reflect the nature of unilateral contracts accurately. For instance, both parties are not bound equally after payment; the insurer carries the obligations, while the insured's role does not involve similar enforceable promises. Additionally, the insured cannot unilaterally change the contract terms without the insurer's consent, and the insured is not the only party making promises within the contract.