Which of the following is true regarding the insured's identity in an insurance contract?

The correct aspect of an insurance contract regarding the insured's identity is that it can be represented by a trading name. This means that a business or an individual may utilize a trading name or a business name, allowing them to enter into an insurance contract under that name rather than their legal name. This flexibility is essential, particularly for sole proprietorships or businesses that operate under a different name for branding purposes.

In insurance, it is not strictly necessary for the insured to be an individual person or a corporation, as businesses can hold policies under their trading names. This provision accommodates various types of entities and supports the diverse nature of the insurance market. Thus, recognizing that businesses can operate under a trading name is crucial for both insurers and policyholders when establishing the contract.