What characterizes a contract of adhesion?

A contract of adhesion is characterized by its "take it or leave it" nature, meaning that one party, typically the insurer, provides the contract terms, and the other party, usually the insured, cannot negotiate those terms. This type of contract is pre-drafted and presented to the insured in its entirety for acceptance. The insured's only option is to accept the contract as it stands or reject it outright.

This lack of negotiation power is a key feature of contracts of adhesion, which is particularly common in insurance agreements. They are designed this way to ensure uniformity and efficiency in the underwriting process but can lead to issues of fairness if one party has significantly more power than the other. Other choices do not reflect this defining characteristic; they imply a degree of negotiation or choice that is not present in a standard contract of adhesion.