What must be true of an insurance contract according to the principle of adhesion?

In the context of the principle of adhesion, the correct understanding revolves around the power dynamics between the insurer and the insured. This principle states that insurance contracts are typically drafted by the insurer and presented to the insured on a "take-it-or-leave-it" basis. As a result, the insurer has more power in the contract formation process.

The nature of adhesion means that the insured has limited ability to negotiate the terms—they adhere to the contract as presented. This inherent imbalance of power often favors the insurer, as they set the terms and conditions that govern the contract.

In contrast, the other options reflect misunderstandings of the principle. The negotiations between parties are not characteristic of adhesion; typically, there is no shared negotiating process, as the contract is already created by the insurer. Similarly, while it is essential for the terms to be provided to the insured before signing, this does not directly relate to the principle of adhesion itself. Additionally, the idea that the insured has a say in drafting the contract contradicts the essence of adhesion, where the insured has no significant control over the contract's wording.