What does the term "named insured" refer to?

The term "named insured" specifically refers to a person or party who is explicitly designated in an insurance policy as being covered under that policy. This designation is critical because it determines who is entitled to the benefits provided by the insurance, as well as who has specific responsibilities under the policy. The named insured is usually the primary individual or entity who holds the insurance contract and is responsible for following the terms set forth within it.

Understanding the role of the named insured is vital, as it impacts coverage limits, liabilities, and rights to claims. Additionally, while other types of insureds can exist, such as additional insureds, only those specifically named in the policy are considered the named insured when addressing legal protections and responsibilities.