Insured definition

An insured is a person or entity covered by an insurance policy, as defined in the contract. Insurance companies list insured parties explicitly in documents such as declarations pages and schedules.

Policies may include multiple insureds, for example, both spouses on auto policies or all partners in business liability coverage. Named insured refers to individuals specifically identified by name, while additional insureds are added through endorsements; for instance, landlords named on tenants’ renters policies.

Insured status grants rights like filing claims and receiving payouts after losses; for example, homeowners receive payment after fire damage if listed as insureds. Insured obligations require compliance with policy terms such as premium payments and prompt claim reporting; failure can void coverage according to 2022 NAIC data showing 12% of denied claims involved noncompliance.

Minors or dependents often qualify as automatic insureds under family health plans per ACA regulations since 2010. The definition of “insured” varies across insurance types–auto insurers typically define it as drivers listed plus permissive users, while life insurers restrict it to the individual whose death triggers payout, from documentation provided by YourInsurance.info.