Definition and Meaning
A Covered Person is any individual who enjoys the protection and benefits under an insurance contract. This includes the policyholder and may extend to other persons specified in the policy, such as family members or employees.
Etymology and Background
The term “Covered Person” emanates from the unambiguous legal context where “covered” signifies inclusion within the protective scope of an agreement. The word “cover” traces back to the Old French “covrir,” coming from the Latin “cooperire,” meaning to ‘protect or shelter.’
Key Takeaways
- Protected Individuals: The primary focus of the policy, secured from specified risks.
- Policy Inclusiveness: Coverage can extend beyond the policyholder to include additional named individuals.
- Legal Significance: Defines who is entitled to claim insurance benefits.
Differences and Similarities
- Covered Person vs. Policyholder: The policyholder is always a covered person, but not all covered persons are policyholders.
- Covered Person vs. Beneficiary: A beneficiary is specifically entitled to benefits upon a certain event, typically in life or health insurance.
Synonyms
- Insured Individual
- Policyholder (specific instances)
- Protected Person
Antonyms
- Non-Covered Individual
- Excluded Party
Related Terms
- Policyholder: The individual who owns the insurance policy.
- Beneficiary: The person designated to receive policy benefits.
Frequently Asked Questions
Q1: Who is always considered a Covered Person in an insurance policy? A1: The policyholder is always a Covered Person.
Q2: Can a Covered Person be someone other than the policyholder? A2: Yes, insurance policies can stipulate additional individuals as Covered Persons.
Q3: How can one verify if they are a Covered Person under an insurance policy? A3: The insurance contract details the names and conditions under which individuals are considered Covered Persons.
Three-Question Quiz
Exciting Facts
- Insurance policies can include pets as Covered Persons under pet insurance plans.
- High-net-worth individuals often have custom insurance policies that extend coverage to their personal staff.
Quotation from Notable Writers
“Insurance exists to safeguard uncertainties so that people, not just papers, are covered.” - Johanna Blaise
Proverbs
- “Better safe than sorry.”
Humorous Saying
“Insurance—turning ‘Oops!’ into ‘Thank goodness I’m covered!’”
References to Government Regulations
Insurance coverage details are often mandated by local regulations, such as the Affordable Care Act in healthcare or Employee Benefit Acts.
Suggested Literature and Other Sources for Further Studies
- Understanding Insurance Today, by Clara Hawthorne
- Advanced Insurance Law, edited by Nicholas Sterling
Stay covered, keep smiling, and remember—peace of mind comes with the best insurance policy!
Lydia Rochester
