If a policy is written with unclear definitions, conditions and provisions which are hidden in the contract, and the insured files a law suit. In the court of law, the contract would be construed in favor of the insured because it is a:

If a policy is written with unclear definitions, conditions and provisions which are hidden in the contract, and the insured files a law suit. In the court of law, the contract would be construed in favor of the insured because it is a contract of adhesion.

A contract of adhesion is generally referred to as, a boilerplate contract or standard form contract. It's typically a contract drafted and offered by a party and accepted and signed by another. (usually one with weaker bargaining power, usually a consumer in need of goods or services).

Under the contract of adhesion, contracts comprises of standard terms and conditions which are usually drafted by the business entity with a stronger bargaining power to a client that primarily has a weaker bargaining power and ability to negotiate for appropriately favorable terms or conditions. A contract of adhesion is mainly used by businesses that offer services such as mortgage, deeds, insurance, property lease, hire purchase, car sales etc.

For instance, if a policy is written with unclear definitions, conditions and provisions which are hidden in the contract, these constitutes an ambiguity; In the court of law, when the insured files a law suit, the contract would be construed in favor of the insured and against the insurance company (insurer).