Unilateral Contract

Only one party is legally bound to contractual obligations after the premium is paid to the insurer. Only the insurer has made a promise of future performance, and only the insurer can be charged with breach of contract. However, in order for an insured to collect, the insured must perform according to the contract. If the insured does not perform then the insurance company does not have to perform. This is mainly covered in a section called "Duties after a loss" found in insurance contracts.