In insurance contracts, what is it called when the insurer presents the policy terms to the insured, who must accept it as is?

In insurance contracts, when the insurer presents the policy terms to the insured, and the insured must accept those terms without any ability to negotiate or modify them, this is referred to as a contract of adhesion.

A contract of adhesion is characterized by its unilaterally drafted terms by one party, typically the insurer, while the other party, the insured, has to accept those terms as they are presented. This kind of contract is based on the principle of "take it or leave it," where the party with less power (the insured) must accept the terms set forth by the more powerful party (the insurer).

In the context of insurance, this concept is crucial because it reflects the nature of the relationship and the expectations between the insurer and the insured. The insured does not have a realistic opportunity to negotiate the terms of the policy, putting them in a position of reliance on the clear and reasonably understood terms presented by the insurer.

Other options, such as negotiated contracts or bilateral contracts, involve mutual agreement and negotiation of terms, which does not apply in this situation. A voidable contract implies that one party has the right to void the contract under certain conditions, which is not relevant to the unchangeable terms of a contract of adhesion