What is a characteristic of an adhesion contract?

An adhesion contract is characterized by being drafted exclusively by one party, typically the insurance company, without any input or negotiation from the other party, in this case, the insured. This means that the terms are typically set in a "take-it-or-leave-it" manner, whereby the insured must accept the contract as it is presented if they wish to obtain the insurance coverage.

This characteristic is crucial because it highlights the imbalance of power in the contract formation process. The insured often has little opportunity to negotiate terms, which can sometimes lead to ambiguity favorable to the insurer if disputes arise. The nature of adhesion contracts assumes that the insured will have to accept the terms written out by the insurance company since they typically do not have the expertise to navigate or negotiate the complex legal language involved.

In comparison, other options suggest that negotiation is possible or that the insured has some input into the policy terms, which is not a feature of adhesion contracts. Additionally, while fairness is subjective, adhesion contracts do not guarantee equal fairness, as they may favor the provider due to the absence of negotiation.