In this sentence-improvement question on noun–preposition combinations, choose which phrase, if any, should replace the highlighted part "represented for a policy" in the sentence "Insurance is a contract, represented for a policy, in which an individual or entity receives financial protection."

Introduction / Context:
This question examines your understanding of correct prepositional usage in formal definitions, particularly in financial and legal contexts. The sentence given is: "Insurance is a contract, represented for a policy, in which an individual or entity receives financial protection." The phrase "represented for a policy" is highlighted. You must decide which of the given alternatives best expresses the idea that the contract takes the form of a policy document, or whether the original phrase already does that correctly.

Given Data / Assumptions:

• Original phrase: "represented for a policy".
• Option (i): represented in a policy.
• Option (ii): represented by a policy.
• Option (iii): represented with a policy.
• The intended meaning is that the insurance contract is expressed or embodied in an insurance policy document.

Concept / Approach:
In standard financial and legal English, we say that a contract is "represented by" or "evidenced by" a document. The document is the representation of the contract. Therefore, the natural and correct preposition is "by", not "for", "in", or "with" in this context. "Represented by a policy" clearly indicates that the policy is the document that stands for the contract. We must therefore choose the option that uses "by" correctly while keeping the rest of the sentence coherent.

Step-by-Step Solution:
Step 1: Identify the key idea: insurance is a contract, and the policy is the formal representation of that contract. Step 2: Note that "represented for a policy" is not idiomatic or standard in English; we do not usually use "for" with "represented" in this way. Step 3: Examine option (i) "represented in a policy" – this suggests that the contract exists inside the policy, which is possible but less precise and not the most natural phrase. Step 4: Examine option (ii) "represented by a policy" – this correctly shows that the policy is the document that represents the contract, matching typical legal wording. Step 5: Examine option (iii) "represented with a policy" – "with" is vague here and does not clearly show the same representational relationship. Step 6: Choose option (ii) as the best, most accurate expression according to standard usage.

Verification / Alternative check:
We can test the improved sentence: "Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection." This is the standard kind of definition you might find in textbooks or policy documents. It reads smoothly and clearly indicates that the policy is the formal representation of the contract. Expressions like "represented for a policy" are not used in such definitions, which confirms that the original phrase was incorrect.

Why Other Options Are Wrong:
The original phrase "represented for a policy" is wrong because "represented for" is not a recognised collocation in this context. Option (i) "represented in a policy" is grammatically possible, but less precise because it suggests location rather than representation; the contract is more accurately represented by the policy, not simply located in it. Option (iii) "represented with a policy" is vague and does not clearly show that the policy is the primary form in which the contract exists.

Common Pitfalls:
A frequent mistake is to treat prepositions as interchangeable. However, in legal and financial language, specific prepositions carry precise meanings. "By" is often used to show agency or representation, as in "represented by a lawyer" or "evidenced by a document". Remembering this pattern helps you quickly eliminate incorrect combinations like "represented for" or "represented with". When in doubt, try to recall how definitions are phrased in textbooks and official documents.

Final Answer:
The correct replacement is Only ii, so the phrase should read "represented by a policy".