Which party is primarily responsible for drafting the insurance contract?

The insurance company is primarily responsible for drafting the insurance contract. This is because the contract is a legal agreement created by the insurer, which outlines the terms, conditions, coverage, and exclusions of the policy. Since the insurer is the party with the resources and expertise to create such legal documents, they develop the policy language to protect their interests as well as to comply with state regulations.

While the insurance agent may assist in explaining the terms and conditions of the policy to the policyholder and providing guidance on customizations, they do not draft the contract itself. The policyholder, on the other hand, receives the contract but typically does not engage in its drafting process; rather, they accept the terms set forth by the insurer. The regulatory authority does review insurance contracts to ensure compliance with laws and consumer protections but is not involved in the creation of the contract itself. Therefore, the responsibility for drafting rests solely with the insurance company.