Which type of insurance contract does not allow buyers to negotiate terms or rates?

The correct answer is Adhesion. An adhesion contract is characterized by a significant imbalance of power between the two parties involved, typically a stronger party (the insurer) drafting the contract with the weaker party (the insured) having little to no ability to negotiate the terms or rates.

In the context of insurance, adhesion contracts mean that the policyholder must accept the contract as is, without the ability to modify any of its terms. This is a standard practice in the insurance industry, where policies are often pre-written and standardized to allow for mass distribution.

This characteristic of adhesion contracts protects the insurer, as they have set terms that apply uniformly, thus allowing for clearer risk assessment and underwriting processes. It also places the onus on the buyer to carefully read and understand the policy before purchase, as they cannot negotiate the terms after the fact.

Other types of contracts mentioned, such as term insurance, universal life insurance, and adjustable insurance, do provide opportunities for the insured to have more involvement in some aspects, either in choosing coverage amounts, premium payments, or adjusting features of the policy over time. In these cases, buyers may engage in some negotiation or selection of terms, differentiating them from the nature of adhesion contracts.