Adhesion: the insurer writes the contract; the applicant can only take it or leave it. Courts therefore read any ambiguity in favor of the insured.

Aleatory: an unequal exchange that depends on chance. A small premium can buy a large death benefit.

Personal: the contract is between the insurer and a particular person, so the insurer cares who is applying. Note the difference between lines: a property policy generally cannot be assigned without the insurer's consent, but a California life policy may pass by transfer, will or succession to anyone, even someone without an insurable interest (Ins. Code §10130). The owner just notifies the insurer under the policy's assignment provision.

Unilateral: only the insurer makes a legally enforceable promise. If the owner stops paying, the policy lapses; the owner has not breached the contract.

Conditional: the insurer pays only if conditions are met, such as premiums paid and proof of loss submitted while coverage is in force.