Which of the following best describes a contract of adhesion?

A contract of adhesion is characterized by being created by one party, typically the insurer, with terms and conditions set in stone, leaving little to no room for negotiation by the other party, usually the insured. This type of contract is common in the context of insurance policies, where the insurance company presents a standardized contract that the insured must accept as is if they wish to obtain coverage.

The key aspect of a contract of adhesion is the imbalance of power in the contract's creation. The party drafting the contract has the advantage, and the other party is essentially "stuck" with the terms provided. This characteristic distinguishes it from other types of contracts where mutual agreement and negotiation play a significant role, as seen in options that suggest flexibility or equal exchange of promises. In practice, this means that if disputes arise regarding ambiguous terms, courts tend to interpret the contract in favor of the party that did not draft it, providing some level of protection for the insured.