1. A contract in which only one party makes a legally enforceable promise is:

Unilateral

Insurance is a unilateral contract because only the insurer makes a legally enforceable promise to pay.

2. An insurance contract that requires certain conditions be met before the insurer pays is:

Conditional

Insurance is conditional because the insured must meet conditions, such as paying premium and filing proof of loss, before benefits are paid.

3. Reinsurance is best described as:

Insurance an insurer buys to transfer part of its risk

Reinsurance lets an insurer transfer a portion of its risk to another insurer to manage exposure.

4. An element of an insurable risk is that the loss must be:

Definite and measurable

Insurable losses must be definite in time, place, and amount, and measurable in dollars.