12 Zoey meets with her insurance agent,Nolan, to purchas e a life insurance policy on her life She has little knowledge about life insu its var ious features , Nolan mentions that life insurance policies are "unilater al contracts."What did he imply? Ok9 mN1ZQ VFBMaE dioizws NGVEF YZz09 hi a. The insure r and the polic yholde er perfo rm their ob ligations at a singl e moment. b. The insur er and the policyt older oblic gate themselv es to pro vide a benefit. c. The ins urer can change the terms of the contract : without notice. d. The po licyholde r can ca ncel the policy lat any time.

The correct answer is **(a) The insurer and the policyholder perform their obligations at a single moment.**<br /><br />Here's why:<br /><br />A unilateral contract is one where only one party makes a promise. In the case of life insurance, the insurer promises to pay a death benefit if the insured dies while the policy is in force. The policyholder's "performance" is the payment of premiums, but this isn't a promise to continue paying them; they can stop at any time. The key event that triggers the insurer's obligation is the death of the insured. At that single moment, the insurer's obligation to pay becomes concrete. The policyholder has already fulfilled their part by paying premiums up to that point.<br /><br />Let's look at why the other options are incorrect:<br /><br />* **(b) The insurer and the policyholder obligate themselves to provide a benefit:** This describes a bilateral contract, where both parties make promises. The policyholder doesn't promise to die; they promise to pay premiums, but as mentioned, this isn't a binding promise to continue paying indefinitely.<br />* **(c) The insurer can change the terms of the contract without notice:** This is incorrect. While insurers can change premiums (usually with notice) for certain types of policies, they cannot unilaterally change the fundamental terms of the contract after it has been issued.<br />* **(d) The policyholder can cancel the policy at any time:** While true, this doesn't define a unilateral contract. The ability to cancel is a feature of many types of contracts, both unilateral and bilateral.<br />