2.2.2 Adhesion
A life insurance policy is a "contract of adhesion" because buyers must adhere to the terms of the contract already in existence. They have no opportunity to negotiate terms, rates, values, etc.
An insurance contract is binding in the respect that the contract must remain as agreed upon by both parties; the agent is prohibited from negotiating insurance contract provisions.
A contract of adhesion is prepared by the insurer rather than by negotiation between the contracting parties.
