Who holds the bargaining power in a Contract of Adhesion?

In a Contract of Adhesion, the insurance company holds the bargaining power because these contracts are typically drafted by the insurer with terms that are non-negotiable for the policyholder. This means that the policyholder must accept the contract as it is, without any ability to modify the terms. The insurer sets the conditions, rates, and coverage, making the policyholder's option limited to either accepting or rejecting the contract.

This one-sided nature of the contract is what fundamentally grants the insurance company the leverage in the transaction. The policyholder, in contrast, generally has less influence over the terms, making their position more vulnerable. The concept of equal bargaining power or the lack of any power does not apply in this scenario, as it is specifically designed to favor the insurer, reflecting the typical dynamics seen in many insurance agreements.