Claims Adjuster Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

The term that refers to the individual or entity that is covered under an insurance policy is "insured." In the context of insurance, the insured is the party who is protected by the policy and stands to receive benefits when a covered event occurs. This could be a person, a business, or another entity that has taken out insurance coverage to mitigate potential risks and financial losses.

Understanding the role of the insured is crucial in the claims process since the insured is the one who files claims, provides necessary documentation, and ultimately receives the benefits outlined in the policy when a valid claim is made. This defines the relationship between the insured and the insurance provider, whereby the insured pays premiums in exchange for coverage against specific risks.

In contrast, other terms like beneficiary refer to someone who may receive benefits from the policy but is not necessarily the one covered. An underwriter is involved in the assessment and pricing of the insurance risks and is not the individual or entity being insured. The term assured is similar to insured but is more commonly used in certain geographical contexts or specific types of insurance, such as in life insurance, making "insured" the more widely applicable and relevant term in this scenario.