Which of the following is NOT a characteristic of insurance contracts?

Insurance contracts possess several key characteristics that define their nature and operation. One of these characteristics is that they are conditional; this means that the insurer's obligation to pay a claim is dependent on the occurrence of a specified event, such as a loss or damage covered by the policy.

Another important characteristic is that insurance contracts are aleatory, meaning that the outcome is contingent on uncertain events, and the amount of the premium paid may not equate to the amount of the potential benefit received. This creates a situation where one party may receive a benefit much greater than what they have paid through premiums, depending on claims history.

Furthermore, these contracts are unilateral, indicating that only one party, typically the insurance company, makes an enforceable promise. The insurer is bound to pay claims and provide coverage, whereas the insured's obligations can change.

The term “universal” does not apply to insurance contracts in the same way. While certain insurance types, like universal life insurance, exist, "universal" in the context of characteristics does not reflect a broad or defining trait recognized across the spectrum of insurance contracts. Therefore, it is the characteristic that does not belong on the list.