Which of the following terms refers to a promissory act in an insurance contract?

The term that refers to a promissory act in an insurance contract is "unilateral." In the context of insurance, a unilateral contract is one in which only one party makes a promise or commitment. The insurance company promises to pay benefits upon the occurrence of a specified event, such as a policyholder's death or a covered loss, while the policyholder is not legally obligated to make any payments beyond the premiums specified in the contract, assuming they choose to cancel the policy. This characteristic highlights the nature of most insurance contracts, where the insurer's promise is the primary obligation, and the insured's duty of premium payment is contingent.

Understanding this term is crucial because it emphasizes the binding nature of the insurer's promise and delineates the asymmetric responsibilities typical in insurance agreements, thereby underscoring the trust placed in insurers to fulfill their contractual obligations.