Which of the following accurately describes a unilateral contract in insurance?

A unilateral contract in insurance is characterized by the obligation of only one party to perform certain duties. In the context of insurance, this means that the insurer is the only party that has a legal obligation to fulfill a promise, such as providing coverage and paying claims. The insured, while having the right to make a claim, does not have any corresponding obligation to the insurer beyond paying the premium.

In this arrangement, the insurance company must honor its promise to provide coverage as long as the insured meets the terms of the contract, such as maintaining premium payments. This is in contrast to a bilateral contract, where both parties have mutual obligations to each other.

The other options describe characteristics that do not align with the definition of a unilateral contract. For instance, mutual obligations suggest a bilateral contract, and the stipulation that the contract can only be oral or that both parties can withdraw freely does not accurately capture the essence of unilateral contracts in insurance agreements, which are often formalized in writing and create a binding obligation for the insurer upon acceptance of the risk.