An insurance contract is described as a contract of adhesion. This means:
Explanation
A contract of adhesion is prepared by one party (the insurer) and offered to the applicant on a take-it-or-leave-it basis, with no negotiation of terms. Because the insured did not write the wording, any ambiguity is generally interpreted in favor of the insured. This is separate from the contract being unilateral (only the insurer makes a legally enforceable promise) and aleatory (an unequal exchange of value dependent on chance).
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