What party is allowed to enforce the terms of a unilateral insurance policy?

In a unilateral insurance policy, the terms can primarily be enforced by the insured. This type of policy is characterized by the fact that only one party makes a legally enforceable promise—in this case, the insurer promises to pay a benefit or provide coverage. The insured is the one who meets the conditions of the policy by paying premiums and adhering to other terms, such as reporting claims in a timely manner.

While the insurer has the obligation to fulfill its promise to provide coverage or pay claims, the insured also has rights under the policy. If the insurer fails to perform its part (for example, by not paying a valid claim), the insured has the right to take legal action to enforce the terms of the policy. This makes the insured the party empowered to seek enforcement of the contract when the insurer does not meet its obligations.

The insurer, beneficiary, and agent do not have the same standing as the insured regarding the enforcement of terms in a unilateral insurance policy, as the insurer is the party making the promise, beneficiaries receive benefits but do not enforce policy terms, and agents act on behalf of insurers but do not negotiate terms directly with insured parties. Thus, the insured holds primary responsibility for ensuring that the contract is honored and can take action if it is not