Who is defined as the insured in an insurance policy?

• A. The insurance company
• B. A covered person or entity
• C. The policy administrator
• D. The claims adjuster

Answer: (B)

In an insurance policy, the insured is defined as a covered person or entity. This means that the insured is the individual or organization that is protected by the insurance coverage provided by the policy. The insured is entitled to benefits under the policy in the event of a loss or claim.

This definition is fundamental in understanding how insurance works. When someone purchases a policy, they are effectively entering into a contract with the insurer, and the insured is the party that the policy is meant to protect. Coverage can apply to individuals, businesses, or other legal entities depending on the nature of the policy.

Additionally, understanding who the insured is is crucial for clarity regarding claims and coverage limits. The terms of the policy will outline which specific individuals or entities qualify as insured, detailing aspects such as named insureds, additional insureds, and conditions that must be met for coverage to apply. This clarity helps both the insured and the insurer understand their rights and obligations under the contract.