Insurance contracts are known as what because certain future conditions or acts must occur before any claims can be paid?

Insurance contracts are termed "conditional" because they require certain conditions to be met before any claims will be paid. This means that both the insurer and the insured have specific obligations and conditions that must be fulfilled for the policy to be in force and for benefits to be available. For example, if an insured individual suffers a loss due to a covered event, such as an accident or illness, the policy provisions stipulate that certain criteria must be met, like the timing of the claim or the nature of the incident. Until those conditions are satisfied, the insurer is not obligated to make a payment.

In contrast, other options do not accurately capture the essence of insurance contracts. "Absolute" suggests a guarantee without conditions, which contradicts the nature of insurance agreements. "Indeterminate" implies an uncertainty that isn’t specific to the conditions of claims and does not reflect the structured requirements of a policy. "Unilateral" refers to the concept where only one party is bound to perform, typically associated with the insurer’s obligation to pay claims, but it does not directly relate to the necessary conditions that must be met for those payments to occur. Therefore, "conditional" is the most accurate term to describe the nature of insurance contracts and their reliance on specific events or