Which characteristic of an insurance contract indicates that it is dictated by one party?

The characteristic of an insurance contract that indicates it is dictated by one party is known as adhesion. This term refers to the nature of insurance contracts being drafted by one party, usually the insurer, and presented to the other party, the insured, on a take-it-or-leave-it basis. This means that the insured does not have the opportunity to negotiate the terms and conditions of the contract; they must accept it as it is presented.

Because the insurer typically has greater power and bargaining strength, the contract often favors the insurer in terms of language, complexity, and requirements. The legal implication of adhesion is that if there is any ambiguity in the terms of the contract, the courts will generally interpret those ambiguities against the insurer. This is because the insurer, as the party that created the contract, is responsible for any unclear language.

Understanding this characteristic is important as it influences the obligations and expectations of both parties entering into the insurance agreement. The other characteristics listed, such as conditional, unilateral, and aleatory, refer to different aspects of insurance contracts and do not specifically address the issue of one party dictating the terms of the contract.