What type of insurance contract is characterized by the unilateral obligation of the insurer to pay claims?

The correct answer is characterized by the nature of insurance contracts, which are typically unilateral in nature. In a unilateral contract, only one party — in this case, the insurer — has an obligation to perform, which is to pay claims as specified in the policy. This means that once the policyholder pays the premium, the insurer is obligated to cover losses or claims that occur during the policy period, subject to the terms and conditions outlined in the contract.

On the other hand, a bilateral contract would require both parties to perform obligations, which is not the structure of a standard insurance agreement. A void contract is one that has no legal effect and is unenforceable, while a mutual contract implies that both parties are bound to fulfill their obligations, which does not accurately reflect the relationship in most insurance scenarios. Thus, the nature of an insurance contract, being primarily an obligation of the insurer, confirms it as a unilateral contract.