Final answer:
An insurance contract created by an insurance company without negotiation space for the insured is known as a contract of adhesion. These contracts are offered on a 'take-it-or-leave-it' basis, with the insured having little ability to alter the terms.
Step-by-step explanation:
An insurance contract prepared by an insurance company with no room for negotiation by the insured party is known as a contract of adhesion. This term describes a standard-form contract drafted by one party (usually a business with stronger bargaining power) and signed by another party (typically a consumer or individual in a weaker position, who has little choice about the terms).
Because these contracts are not typically negotiable and are offered on a 'take-it-or-leave-it' basis, the insured has little to no ability to modify its terms. This concept is distinct from other types of contracts, such as unilateral contracts (where one party makes a promise in exchange for an act), aleatory contracts (where the performance depends on a certain event, such as winning a bet), and commutative contracts (where the mutual transfers are supposed to be of equal value).
In the context of insurance, contracts tend to be of adhesion, where the insurer provides the terms, while the insured must adhere to those terms as is, evidencing the imbalance of power or information in such relationships.