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The correct answer is that the insurance company typically prepares an insurance contract. This is because the insurance company has the resources and legal expertise needed to draft contracts that outline the terms, conditions, and coverages of the insurance policy.

Insurance contracts are formal documents that detail the agreement between the insurer and the insured. They must comply with legal regulations and industry standards, which are best handled by the insurance company itself. The company is responsible for ensuring that all necessary provisions are included to protect both parties and to comply with the law.

While agents may assist in the process by providing information, advising clients, and facilitating the application process, it is ultimately the insurance company that drafts and finalizes the contract. The applicant and policyholder are involved in the application and acceptance process but do not typically engage in the preparation of the contract.