ECONOMICS

Detailed explanation-1: -Insured is a person or legal entity whose financial losses are covered by the insurance policy. Under general and health insurance policies the insured is entitled to receive the benefit amount from the insurer for the covered financial loss.

Detailed explanation-2: -07 February 2022. Underinsurance occurs when the sum insured on your insurance policy-that is, the amount listed as the maximum we’ll pay out if you make a claim-isn’t enough to cover the full cost of rebuilding, repairing or replacing your home and its contents.

Detailed explanation-3: -What is under-insurance? This is when something is insured for less than its true value, meaning that you have inadequate insurance coverage.

Detailed explanation-4: -For example, if Roy has his house insured for $200, 000, but the cost to repair it in the event of a bout of bad weather would be at least $300, 000, then he is underinsured-in this case, by $100, 000.

Detailed explanation-5: -2) The insured is the person whose life is being covered against the risk under the policy. 3) The insurer is the insurance company that provides the insurance cover. 4) The proposer is the person who takes the cover and is also called the policyholder.