What does the term 'insured' refer to in an insurance policy?

The term 'insured' in an insurance policy specifically refers to the individual or entity that is covered by the insurance. This is the person or organization that receives the protection provided under the policy terms, meaning that they are entitled to benefits or compensation if a covered event occurs. For instance, in a health insurance policy, the insured would be the individual receiving health care coverage. In the context of property insurance, the insured would be the homeowner or business that is protected against loss or damage to the insured property.

Understanding who the insured is vital, as it directly impacts claims, coverage limits, and responsibilities under the policy. The definition is foundational to understanding the rights and obligations within the insurance contract. Other potential roles, such as the insurance company’s representative or agent, do not fall under the definition of 'insured,' which further emphasizes the importance of correctly identifying who is covered under the policy.