1. An insurance policy is called a contract of adhesion because:

One party writes it and the other accepts or rejects it as written

A contract of adhesion is drafted by one party and offered to the other on a take-it-or-leave-it basis.

2. An insurance contract is described as aleatory because:

The values exchanged may be unequal depending on chance

Aleatory contracts involve an exchange of potentially unequal amounts that depends on an uncertain event.

3. The premium paid by the insured and the insurer's promise to pay covered losses together represent the contract's:

Consideration

Consideration is the value each party gives: the insured's premium and the insurer's promise to pay covered claims.

4. After paying a covered loss, an insurer's right to pursue a responsible third party is:

Subrogation

Subrogation lets the insurer recover a paid loss from the third party who was legally responsible for it.