A contract of adhesion is prepared by one of the parties (insurer) and accepted or rejected by the other party (insured). Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. In other words, a contract offered on a "take-it-or-leave-it" basis by an insurer.
An aleatory contract is a contract in which unequal amounts or values are exchanged. The premium paid by the insured is small in relation to the amount that will be paid by the insurer in the event of loss.
An insurance contract is a personal contract because it is between the insurance company and an individual. Since the company has a right to decide with whom it will and will not do business, the insured cannot be changed to someone else without the written consent of the insurer.
Insurance covers the applicant’s financial interest in the object or person insured. The policy may not cover the entire financial loss, as the loss may be greater than the face amount of the policy.
As the name implies, a conditional contract requires that certain conditions must be met by the policyowner and the company in order for the contract to be executed, and before each party fulfills its obligations. For example, the insured must pay the premium and provide proof of loss in order for the insurer to cover a claim.