Who is referred to as the insured in an insurance policy?

In an insurance policy, the insured is defined as the individual or organization that pays premiums for protection against certain specified risks. This is significant because the insured has a vested interest in the policy, as it provides financial coverage or compensation for losses that may occur as outlined in the policy terms.

The insured is the party that benefits from the insurance contract, receiving coverage in exchange for the premiums they pay. This relationship underscores the primary function of insurance as a means of risk management, where the financial burden associated with potential losses is transferred from the insured to the insurer.

Understanding who the insured is allows for better comprehension of policy rights, obligations, and the overall intentions behind the purchase of insurance. It highlights the essential role of the insured in the insurance transaction, as they are the ones seeking protection and, thus, shaping the terms of the coverage.