Define 'insured'.

The definition of an "insured" specifically refers to the individual or entity that is covered by an insurance policy. This term encompasses anyone who has a contractual agreement with an insurance company, meaning they are protected against specified risks in exchange for premium payments.

Understanding this concept is crucial in the field of insurance, as it establishes who is entitled to the benefits of a policy when a loss occurs. The insured can be a person, business, or organization that incurs a financial loss, which the insurance policy is designed to cover.

Other options reference different aspects of insurance. The insurance company is the provider of coverage, and while documenting claims is part of the claims process, it does not define who is insured. The legal framework governing insurance is related to the regulations and laws that control how insurance operates but does not pertain to the definition of an insured party. By recognizing the insured as the entity or individual covered by the policy, one understands the core relationship that underpins insurance transactions.