Insurance policies are offered on a "take it or leave it" basis, which makes them?

Insurance policies being offered on a "take it or leave it" basis characterizes them as contracts of adhesion. In a contract of adhesion, one party (typically the insurer) has significantly more power and typically drafts the contract terms, while the other party (the insured) has little to no ability to negotiate those terms. This results in a scenario where the insured must accept the contract as it is, leading to a binding agreement that reflects the pre-determined terms set by the insurer.

The "take it or leave it" nature of these contracts emphasizes the imbalanced bargaining power inherent in insurance agreements. In this context, the policyholder does not have the luxury of modifying the policy terms but must either accept or reject the contract as it stands. Understanding this concept is crucial, as it underlines many legal principles surrounding consumer protection and fair practice in the insurance industry.