What is the main reason for an insurance broker to include the library code for a policy clause in a contract?

The reason for an insurance broker to include the library code for a policy clause in a contract is primarily to list the clause without its full text. This approach allows the contract to specify the applicable clause in a concise manner while referencing the more detailed language and definitions contained in a library or standardized document. By using the library code, brokers can effectively navigate complex policy language and ensure clarity without overwhelming the contract with lengthy textual descriptions. This practice is not just efficient but also provides streamlined access to detailed clauses when needed, thus maintaining the integrity of the policy while making it user-friendly.

Including comprehensive policy details or simplifying policy language may be beneficial, but the core intent of using a library code is precisely to reference existing clauses succinctly for ease of understanding and documentation. Compliance with regulatory requirements might be relevant in the broader context of insurance policies, but it is not the primary reason for this specific action.