Because of the fact that the terms of an insurance contract are fixed by the insurer...

Because of the fact that the terms of an insurance contract are fixed by the insurer instead of being determined by a bargaining process, the insurance policy is said to be

	1.	a contract of utmost good faith.
	2.	an aleatory contract.
	3.	a unilateral contract.
	4.	a contract of adhesion.

Expert Solution

COntract of adhesion

Because contract of adhesion means terms & conditions of contract are set by one party, & other party has very little/ no ability to negotiate favorable terms & is thus placed in "take it / leave it" position. In case of insurance, the party setting the TnCs is the insurer and the insured has no bargaining power

jeff jeffy answered 2 years ago

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