What type of contract is a title insurance policy conditioned upon the insured paying premiums?

A title insurance policy is classified as a conditional contract because its validity and the insurer's obligation to pay claims are contingent upon specific conditions, including the insured paying the required premiums. In this context, the insurer agrees to provide coverage only if the insured fulfills the financial obligation by paying premiums. This contractual setup establishes the foundation for the insurer’s risk and liability once the premium obligations are met.

In contrast, a unilateral contract involves a promise by one party in exchange for a performance by another party, which isn’t the case with a title insurance policy since both parties (the insurer and the insured) have obligations. A personal contract refers to agreements that are tied to the individuals involved, which is not specific to the nature of title insurance. Estoppel relates to preventing a party from making claims or assertions that contradict previous statements or behaviors, and it does not apply in this context to define the nature of the title insurance contract itself.