What characteristic of an insurance contract indicates that only one party can enforce the agreement?

The characteristic that indicates only one party can enforce the agreement is unilateral. In a unilateral insurance contract, the insurer makes a promise to pay for certain losses or provide coverage in exchange for the premium paid by the insured. The insured does not have a corresponding obligation to the insurance company, meaning that only the insurer is bound by the terms of the contract once the premium is paid.

This contrasts with a bilateral contract, where both parties have obligations to each other. In the context of an insurance contract, this means that while the insurer must fulfill its promise to pay claims or cover losses within the terms of the policy, the insured does not have an obligation to provide anything further than paying the premium. This unique structure is fundamental to understanding the nature of insurance agreements and reinforces the principle of risk transfer, which is a core concept in the insurance industry.