Insurance contracts are also considered ____________ in that they are legal documents that required the insurer to pay if covered events occur. Because the insurance company creates the contract, it is liable if there are any ambiguities in the contract language.

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Insurance contracts are considered "contracts of adhesion" because they are drafted by the insurer, and the insured has little to no ability to negotiate terms. If there are ambiguities, they are typically interpreted in favor of the insured.

Insurance Contracts Are Also Considered ____________ in That They Are