What does the term "adhesion" in insurance policies imply?

The term "adhesion" in insurance policies refers to a situation where one party, typically the insurer, presents a standardized contract to the other party, usually the insured, who has little to no ability to negotiate the terms. This means that the insurer drafts the policy and offers it on a "take it or leave it" basis. The insured does not have the option to modify the terms of the agreement, which highlights the imbalance in the negotiation power between the two parties.

This concept underscores the nature of many insurance contracts, where the insurer is in a stronger position to dictate the terms. In cases of ambiguity within the contract, courts often interpret the terms in favor of the insured, recognizing that they did not have the ability to negotiate the finer points. This reflects the fundamental premise behind adhesion contracts in insurance, where one party’s terms dominate the agreement and the other party must adhere to them.