A contract that cannot be bargained over. Insurance contracts are considered contracts of adhesion because the insured cannot negotiate the terms.
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Insurance contracts are usually contract of adhesion. The insured seldom participates in the drafting of the contract although risk managers of large firms may occasionally do so and this practice is apparently becoming more common. Usually, the Insurer offer the insured a printed document on a take-it-or-leave-it basis. Courts frequently refers to this characteristic of Insurance contracts when they interpret ambiguous provisions in favor of the insured.
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MEDICAL,USA: Legal agreement prepared by an insurance company that must be either accepted or rejected completely by the other party (insured), without negotiations between the parties to the agreement. Insurance contracts are contracts of adhesion.
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REFERENCE: See: “Contract of Insurance, Characteristics, Contract of Adhesion.”
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REFERENCE: See: Adhesion contract.