An insured is an individual or entity who is covered under an insurance policy. If that individual or entity incurs a loss that is potentially covered by the insurance policy, the insured may submit a claim to the insurance company. The insurance company would then review the claim, and if they determine it falls within the policy’s coverage, they will pay the claim out to the insured. In other words, the insured is someone guarded against financial risks and damages by an insurance policy.
1. What is an insurance policy?
An insurance policy is a contract between an insured and an insurer. It outlines what risks are covered, the terms of coverage, and the cost of the insurance (premium). The insured pays the insurer a premium in exchange for financial protection against specific types of risks.
2. Who is an insurer?
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An insurer is the insurance company that underwrites and issues the insurance policy. This entity takes on the potential financial risks of the insured in exchange for the payment of premiums.
3. What is a premium in insurance?
A premium is the amount of money that an individual or business pays to an insurance company in exchange for maintaining an active policy. These payments may be made annually, semi-annually, quarterly, or monthly, depending on the terms of the policy.
4. What does it mean to ‘submit a claim’ in insurance?
Submitting a claim in insurance refers to the process of officially requesting payment from an insurance company to cover a loss. The insurer will review the claim to see if it’s covered by the policy. If approved, the insurer will then release funds to the insured, or directly to the provider of services or goods to cover the loss or damage.
5. What are the common types of insurance?
There are many types of insurance, typically designed to cover various aspects of life and business. These include but are not limited to health insurance, car insurance, life insurance, homeowner’s insurance and business insurance. Each of these provides coverage for different occurrences and types of losses.