Who is referred to as the "insured" in an insurance contract?

• A. Insurance Agent
• B. Policyholder
• C. Principal
• D. Beneficiary

Answer: (B)

In an insurance contract, the term "insured" refers to the individual or entity covered by the insurance policy, which is commonly the policyholder. This is the person or legal entity that purchases the insurance and has the contractual rights and obligations under that agreement. The policyholder is entitled to coverage and benefits as specified in the policy, and they are responsible for paying premiums to maintain the coverage.

This distinction is important because the insured's rights and responsibilities defined in the contract outline what protections and services they can expect from the insurer, as well as what actions they must take to keep the policy in force. Understanding who the insured is helps clarify who receives the benefits of the policy and who is liable for potential claims.

The other roles, such as the insurance agent, principal, and beneficiary, have different definitions and functions within an insurance context, but they are not referred to as the "insured." The insurance agent acts on behalf of the insurer to sell policies, the principal typically refers to the party that has control or manages a contract, and the beneficiary is someone designated to receive benefits from a policy, such as in life insurance.