What does adhesion mean in insurance?
Understand the Problem
The question is asking for the definition and explanation of the term 'adhesion' as it relates to the field of insurance. This implies a need for clarity on legal or contractual concepts within insurance policies.
Answer
An adhesion contract is a 'take it or leave it' insurance agreement with non-negotiable terms.
An adhesion contract in insurance means an agreement where the terms are set by one party and the other party has little to no ability to negotiate more favorable terms, essentially a 'take it or leave it' deal.
Answer for screen readers
An adhesion contract in insurance means an agreement where the terms are set by one party and the other party has little to no ability to negotiate more favorable terms, essentially a 'take it or leave it' deal.
More Information
Adhesion contracts are common in various industries and often seen in insurance policies where the insurer has the advantage in setting the terms.
Tips
People often overlook the importance of carefully reviewing adhesion contracts due to their non-negotiable nature. It's important to understand all terms and conditions before accepting.
Sources
- What is adhesion insurance? - Bankrate - bankrate.com
- Adhesion Contract: Definition, History, and Enforceability - investopedia.com
- adhesion contract (contract of adhesion) | Wex - Law.Cornell.Edu - law.cornell.edu
