For example, if you are injured in a traffic accident caused by careless driving by another party, you will be compensated by your insurer. However, your insurance can also sue the reckless driver to get that money back. An insurance contract is entered into between an insurance company or insurer and a consumer or insured to protect life or assets from potential monetary risk. Suppose you live in your uncle`s house and apply for homeowner`s insurance because you think you can inherit the house later. Insurers will refuse your offer because you do not own the house and therefore will not have to suffer financially in the event of a loss. When it comes to insurance, the house, car or machinery is not insured. Rather, it is the monetary interest for this house, the car or the machines, to which your policy applies. These contracts are regulated by law and should, as such, be in legal form. These contracts must comply with the requirements of the legal form and should also be approved by the State Insurance Department. The immediate case shows once again the dangers of the current complex structuring of insurance policies. Unfortunately, the insurance industry is addicted to the practice of constructing a condition or exception in the form of a Babel language tower in the policies.
We join other courts and deplore a trend that plunges policyholders into a state of insecurity and places the task of resolving it on justice. We reaffirm our advocacy for clarity and simplicity in policies that serve such an important public service.  For example, suppose you did not know that your grandfather died of cancer and therefore did not disclose this essential fact in the family history questionnaire when you applied for life insurance; It`s an innocent secret. However, if you were aware of this essential fact and deliberately withheld it by the insurer, you are guilty of fraudulent non-disclosure. Co-insurance refers to the distribution of insurance by two or more insurance companies in an agreed report. For insurance in a large shopping centre, for example, the risk is very high. Therefore, the insurance company may include two or more insurers to share the risk. There may also be co-insurance between you and your insurance company. This provision is very popular in health insurance, where you and insurance decide to share the covered costs in a 20:80 report. As a result, your insurer pays 80% of the insured damages during the claim, while you pay the remaining 20%.
In the United States, in-kind and accident insurers generally use similar, if not identical, language in their standard insurance, designed by advisory bodies such as the Insurance Services Office and the American Association of Insurance Services.  This reduces the regulatory burden on insurers, since forms of insurance must be approved by the states; it also makes it easier for consumers to compare policies, albeit at the expense of consumer choice.  In addition, when the political forms of the courts are reviewed, interpretations become more predictable when the courts develop the interpretation of the same clauses in the same forms of insurance and not the policies of different insurers.  An insurance contract is not a new approach because it provides financial protection to consumers in the event of loss of assets or consumer death. The need for an insurance contract is unavoidable and enforceable by law for all insurance companies around the world. The insurance contract must explicitly specify whether the insurance company funds a purchase sale insurance that helps the insured against sudden departures or deaths.