Define 'Named Insured.'

A 'Named Insured' refers specifically to the individual or entity that is clearly identified on the insurance policy as being covered by the policy. This designation is vital because it establishes who holds rights and responsibilities under the insurance contract. The Named Insured has direct authority concerning policy changes, claims filing, and any other actions related to the insurance policy.

This definition is significant as it ensures that the parties involved know who is explicitly protected and can make claims should a covered event occur. For instance, if a business is the Named Insured on a commercial property policy, only that business can file claims related to covered losses on that property.

In contrast, other options address broader or different concepts, such as individuals with an interest in the insured property or the claims process, which do not capture the precise legal significance of a Named Insured. Understanding these distinctions is crucial in effectively managing insurance policies and navigating claims.