What term describes a contract where the insurer creates the contract and the applicant must either accept or reject it?

The term that describes a contract where the insurer creates the contract and the applicant must either accept or reject it is "Adhesion." This concept is a fundamental characteristic of insurance contracts. In an adhesion contract, one party (the insurer) drafts the terms, and the other party (the insured) has little to no ability to negotiate those terms. This means that the applicant must accept the contract as it is presented, or not at all, which places an emphasis on the pre-determined nature of the agreement.

Insurance contracts are typically complex, and the insurer has the superior bargaining position, leading to the creation of a standard form that must be adhered to by the applicant. In the event of any ambiguities in the contract, courts often rule in favor of the insured, applying the principle of "contra proferentem," which interprets unclear terms against the interests of the party that drafted the agreement. This reinforces the nature of adhesion contracts and highlights the significance of the unilateral control exercised by the insurer in these agreements.