What type of contract does not allow negotiations and is prepared solely by the insurer?

An adhesion contract is a type of agreement where one party, typically the insurer, writes the terms and conditions without any negotiation from the other party, usually the insured. In this scenario, the insured must accept the contract as-is, meaning they cannot alter the stipulations of the policy. This characteristic inherently creates a power imbalance because the insurer dictates the terms.

This concept is especially relevant in the context of insurance, as policyholders often receive pre-drafted contracts that they have little to no power to negotiate. The insurer's role is to create a standardized contract that outlines the coverage, limitations, and obligations without input from the consumer. Thus, the correct answer accurately reflects the nature of the relationship between insurers and insureds in such contracts, highlighting the non-negotiable aspect inherent in adhesion contracts.