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Web formation of the insurance contract. Web formation of an insurance contract. The formation of an insurance contract involves a series of distinct steps. Although special rules apply to insurance contracts, such as the duty of. Web an insurance agreement is a legal contract between an insurance company and an insured party. Web insurance policies are contracts of adhesion , meaning insureds have no input in the design of a policy’s. Web an insurance contract is a document representing the agreement between an insurance company and the insured. This contract allows the risk.