Which of the following correctly defines the term "assured" in insurance?

Which of the following correctly defines the term "assured" in insurance?

• A. The insurance company
• B. The insurance agent
• C. The person being insured
• D. The fund for payouts

Answer: (C)

The term "assured" in insurance specifically refers to the person being insured, which is why the correct answer is C. In an insurance context, the "assured" is the individual or entity that holds the policy and is protected against certain risks, as specified in the insurance agreement. This term emphasizes the relationship between the insurer and the policyholder, highlighting that the assured has a vested interest in the coverage provided by the insurance contract. A common mistake may be to think the insurance company defines the assured, but the company is actually the one providing the coverage rather than being insured. Similarly, the role of the insurance agent is to facilitate the sale of insurance and provide information, but they are not the insured party. Lastly, the funding for payouts is the insurance company's responsibility, typically managed through the premiums collected, but it does not designate who is being insured. Thus, it is essential to understand that "assured" specifically points to the individual or entity receiving the benefits of the coverage in an insurance agreement.

The term "assured" in insurance specifically refers to the person being insured, which is why the correct answer is C. In an insurance context, the "assured" is the individual or entity that holds the policy and is protected against certain risks, as specified in the insurance agreement. This term emphasizes the relationship between the insurer and the policyholder, highlighting that the assured has a vested interest in the coverage provided by the insurance contract.

A common mistake may be to think the insurance company defines the assured, but the company is actually the one providing the coverage rather than being insured. Similarly, the role of the insurance agent is to facilitate the sale of insurance and provide information, but they are not the insured party. Lastly, the funding for payouts is the insurance company's responsibility, typically managed through the premiums collected, but it does not designate who is being insured. Thus, it is essential to understand that "assured" specifically points to the individual or entity receiving the benefits of the coverage in an insurance agreement.