Insured Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Insured, written in plain English, along with examples of how it is used.
What is Insured?
The person or corporation who will receive compensation on death or damages related to health or property as mentioned in the insurance policy.Insured can be the person named in the policy or his beneficiaries as stated in the policy.
History and Meaning of Insured
The term "insured" is a common term in the insurance industry and refers to the party that is covered by an insurance policy. The insurance policy is a legal contract between the insurer, who is the entity providing the insurance coverage, and the insured, who is the party receiving the protection. The insured can be either an individual or a corporation, and they will receive compensation from the insurer if the events specified in the policy occur, such as a car accident, a fire, or a medical emergency.
Examples of Insured
- John, the owner of a house in a flood-prone area, purchased flood insurance to protect his property against any flood damages. He is the insured in this policy.
- Sarah has a life insurance policy that she purchased to provide financial security for her family in the event of her untimely death. She is the insured, and her family members are the beneficiaries that will receive the compensation.
- ABC Corporation purchased liability insurance to protect its business against any lawsuits filed against it. The corporation is the insured in this policy.
Legal Terms Similar to Insured
- Beneficiary - A person who receives the compensation under an insurance policy upon the death of the insured.
- Policyholder - The person who owns the insurance policy and is responsible for paying the premiums.
- Insurer - The company or entity that provides the insurance coverage to the insured.