AAERT Certified Electronic Reporter (CER) Practice Test

What is the role of the insured in relation to the insurance policy?

1. The person who suffered the damage or loss

2. The person carrying the insurance policy

3. The insurance company

4. The date when the loss occurred

The correct answer is: The person carrying the insurance policy

The role of the insured in relation to the insurance policy is primarily as the person carrying the insurance policy. The insured is an individual or entity that has purchased insurance coverage to protect against specific risks or losses outlined in the policy. This relationship entails the insured paying premiums to the insurer in exchange for financial protection or reimbursement in the event of a loss or damage covered under the policy. This means the insured is the party who holds the rights and responsibilities outlined in the insurance agreement, such as the responsibility to pay premiums on time and to file claims in the case of a covered loss. Therefore, understanding the role of the insured is critical in grasping how insurance policies function as it relates to both coverage and the obligations that come with that coverage.