What characteristic of an insurance contract describes the situation where the insurer has made all the decisions regarding the policy provisions?

Adhesion is a characteristic of an insurance contract where it is written primarily by the insurer, leaving the insured with little to no ability to negotiate the terms. This principle highlights the fact that the insurer dictates the conditions and provisions of the policy, which the policyholder must accept in entirety. The nature of such contracts emphasizes that any ambiguity within the contract will typically be interpreted in favor of the insured, due to the unequal bargaining power in the relationship.

In this context, while terms such as reciprocal, admitted, and annuitization period describe other specific aspects of insurance contracts or concepts, they do not capture the essence of how the terms are established between the insurer and insured. A reciprocal contract refers to an arrangement in which members agree to provide coverage for one another, while admitted refers to insurance policies that are licensed and authorized by state regulators. The annuitization period pertains to the time frame during which an annuity accumulates value prior to payout. Thus, their definitions do not align with the concept of an insurer making unilateral decisions about contract terms, which is central to the adhesive nature of insurance policies.