An insurance policy created with little input from the insured is referred to as?

An insurance policy that is created with little input from the insured is referred to as an adhesion contract. This type of contract is characterized by one party drafting the terms and the other party having little to no ability to negotiate those terms. In the context of insurance, the insurer typically provides a pre-written policy that the insured must accept or reject as a whole; any modifications to the terms are rarely allowed.

This lack of negotiation power can lead to the insured being at a disadvantage, as they must adhere to the stipulations laid out by the insurer. Courts often interpret these types of contracts in favor of the insured in cases of ambiguity, as it is acknowledged that they had no real input in the creation of the document. The term "adhesion" implies that the contract is "stuck" to the party that must accept it, reflecting the imbalance of power in the contracting process.

In contrast, mutual contracts and negotiated contracts involve more equal participation from both parties in the crafting of the terms, while unilateral contracts are agreements where only one party makes a promise or commitment without the other party having an obligation to complete the contract.