A contract of adhesion is a take-it-or-leave-it insurance form where the drafting party sets terms and the insured has little room to negotiate language.
The policyholder can still rely on statutory and contract interpretation rules for ambiguity, good faith obligations, and required disclosures.
Why it matters
Most retail insurance forms are adhesion-style, so policy clarity and plain-language drafting directly affect dispute outcomes.
Claims and disputes
When coverage is disputed, courts often examine whether terms were clear and whether policy language should be interpreted against the drafter.