Insured

The insured is the subject who has the right to claim insurance benefits under an insurance contract. In foreign trade cargo transportation insurance, it is usually the exporter or importer. Depending on trade terms (such as CIF, FOB), the obligation to insure and the point of risk transfer vary: under CIF, the seller is responsible for insuring and acts as the insured, but after risk transfers to the buyer, the buyer must become the actual insured by endorsing the policy; under FOB or CFR, the buyer arranges insurance and acts as the insured. Use cases include letter of credit settlement (requiring the policy to name the bank as first beneficiary) and claims (the insured must hold the policy and have insurable interest). Notes: The insured must have an insurable interest in the subject matter insured, otherwise the contract is void; policy transfer requires endorsement, and the transfer should occur before the loss; unlike the 'applicant' who only pays the premium, the insured has the right to claim; unlike the 'beneficiary' who specifically refers to the person entitled to benefits in life insurance. In addition, the insured's name must match the bill of lading, invoice, and other documents to avoid discrepancies.