Insurance policies are offered on a "take it or leave it" basis, which make them...

Insurance policies being offered on a "take it or leave it" basis identifies them as contracts of adhesion. This term refers to agreements where one party, usually the insurer, presents the terms of the contract to another party, typically the insured, who has little to no ability to negotiate the terms. The insured can either accept the contract as is or decline it entirely. This characteristic is a hallmark of many standardized insurance policies, where the insurer has more power in drafting the terms due to their greater expertise and resources.

Contracts of adhesion are generally treated differently in legal contexts because they are often considered to contain unequal bargaining power. If disputes arise over the interpretation of such contracts, courts may interpret any ambiguous terms in favor of the insured, as they did not have the opportunity to negotiate them. This concept underlines the nature of insurance contracts and emphasizes the need for transparency and fairness in how these products are presented to consumers.