In what way are insurance policies said to be aleatory?

Insurance policies are described as aleatory because they involve the potential for an unequal exchange of value between the insurer and the insured. In an aleatory contract, the outcomes depend on uncertain events, meaning one party may receive much more value than they paid for, while the other party may deliver benefits only if certain conditions arise, such as the occurrence of an insured event. For instance, a policyholder may pay relatively low premiums over the years but file a claim for a significant amount if a covered event occurs. This intrinsic uncertainty is a fundamental characteristic of insurance contracts, reflecting their nature as agreements built on risk and chance.

The other options address different aspects of contracts or insurance but do not accurately reflect the aleatory nature of insurance. The first choice suggests a one-sided promise, which does not capture the essence of risk-sharing inherent in insurance. The third choice implies that contracts are unilaterally created, while many insurance policies are based on mutual agreement and negotiation elements. Lastly, the fourth choice discusses contract ambiguity and its resolution rather than the core principle of unequal value exchange typical in aleatory contracts.