A policy of adhesion can only be modified by whom?
a. The agent b. The applicant c. The primary beneficiary d. The insurance company
Answer: d. The insurance company
The insurance policy of adhesion, as it is commonly known, is a standard set of provisions and conditions contained in a contract drafted by an insurance company. It sets the terms and conditions, leaving little or no say for the applicant or the policyholder. The only insurer who had issued the questionable policy applicable in the case of adhesion is the only one that has the rights to amend the terms and conditions of the agreement. The insurer has a “take it or leave it” basis. By providing a pre-determined standard form of a not-subject to personalization policy content and either the applicant, or agent, or beneficiary cannot solely change its contents. This safeguards the company’s interests as well as gives insurers a fair shot across all risk classes by having such provisions
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