Final answer:
The term 'intersex' refers to individuals with both male and female anatomical traits, which may include genitalia, hormones, and chromosomes, representing a modern and respectful understanding of such conditions.
Step-by-step explanation:
The term that refers to individuals who exhibit both male and female anatomical characteristics, such as genitalia, hormones, and chromosomes, and is the modern replacement for the outdated and insensitive term "hermaphrodite", is known as intersex. Intersex is a broad term used to describe a variety of conditions in which a person is born with reproductive or sexual anatomy that doesn't fit the typical definitions of female or male. It covers a range of medical and genetic conditions, and intersex people might have variations in their chromosomes, hormones, or anatomy that are recognized at different stages of life. There is growing medical ethics consensus against unnecessary corrective surgeries on intersex infants, promoting the view that any such decisions should be deferred until the individual can consent.