Is a legal term for people with a mental disorder that implies a lack of responsibility for their behavior and an inability to manage their affairs.

Insanity  is a legal term for people with a mental disorder that implies a lack of responsibility for their behavior and an inability to manage their affairs.

Explanation:

Insanity is a category for a person that is suffering of a mental disorder, this affects people´s life in most general aspects of it. Since they are not always capable of identifying what is real that what is not, it is hard to trust they would take reasonable decisions in daily basis. Their judgment and reason are affected, so they can missread situations.