What does the term "aleatory contract" refer to in insurance?

The term "aleatory contract" refers specifically to a type of contract in which the exchange of value between the parties involved is not equal or is contingent upon uncertain events. In the context of insurance, this means that the premium paid by the policyholder may be significantly less than the amount the insurer might pay out in the event of a claim, highlighting the inherent uncertainty in the agreement.

Insurance contracts are considered aleatory because the insurer's obligation to pay benefits is uncertain and depends on whether a specific event occurs, such as an accident or the policyholder's death. If that event does not occur, the insurer retains the premium without any obligation to pay out. This unequal exchange of value is a defining characteristic of aleatory contracts, thus solidifying option B as the correct answer.