What does the concept of adhesion mean in insurance policies?

The concept of adhesion in insurance refers to the nature of the insurance contract where it is typically written by the insurer rather than the insured. This means that the insurer drafts the policy, detailing the terms, conditions, and coverage provided. The customer is then presented with the policy and has the choice to either accept it as is or decline it. Due to this unbalanced nature of bargaining power, where the insurer holds a significant advantage in drafting the terms, courts often interpret any ambiguity in the policy in favor of the insured.

The other options do not accurately reflect the nature of adhesion. While it’s not representative of negotiations where both parties have equal input, nor does it imply that customers write their own policies, it primarily highlights the one-sided nature of the contract creation process. The ability to modify policies after acceptance does not align with the concept of adhesion, which emphasizes the take-it-or-leave-it scenario typically faced by consumers.