Life & Health Insurance Practice Exam

Who is referred to as the party receiving insurance protection under an insurance policy?

1. Insurer

2. Agent

3. Insured

4. Broker

The correct answer is: Insured

In the context of an insurance policy, the party receiving insurance protection is known as the insured. This term refers specifically to the individual or entity for whom the policy provides coverage against specified risks, such as loss, damage, or liability. The insured is the person who might receive benefits or compensation from the insurer in the event of a claim. The insured entity is often outlined clearly in the policy documents and is critical to determining who is covered under the terms of the agreement. In contrast, the insurer is the company providing the insurance, the agent is the representative who sells or facilitates the insurance policy to clients, and the broker acts as an intermediary between the insured and insurer, helping the insured find suitable coverage. Understanding these roles clarifies the function of each party in the insurance transaction and reinforces the importance of the insured in the context of receiving protection.