A formal writing style is not necessarily âbetterâ than an informal style, rather each style serves a different purpose and care should be taken in choosing which style to use in each case.
insured contract. A term used to specify the limit of contractual liability coverage. This term can refer to lease agreements, easement agreements, and any other agreement that relates to the insured's business.
An insurance contract is considered a contract of adhesion because the applicant adheres to the terms of the contract if they want the benefit to remain in effect. The contract is prepared by one party (insurance company) and accepted by the insured. These contracts are not negotiated between the two parties.