Proposer vs. Insured — What's the Difference?
By Maham Liaqat & Urooj Arif — Updated on April 5, 2024
The proposer initiates the insurance process by applying for coverage, whereas the insured is the person whose life or property is covered by the insurance policy.
Difference Between Proposer and Insured
Table of Contents
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Key Differences
The proposer is an individual or entity that fills out and submits an insurance application, seeking coverage for life, health, property, or liability risks. This role involves providing detailed information and possibly undergoing assessments to determine the risk and premium rates. On the other hand, the insured is the person or entity whose life or property is protected under the insurance policy. While the proposer often becomes the insured once the policy is issued, these roles can involve different individuals or entities in certain situations, such as in corporate insurance policies or when insuring someone else's life.
When it comes to the application process, the proposer must accurately disclose all relevant information, including potential risks and any pre-existing conditions that might affect the policy's terms. Failure to do so can lead to the denial of a claim or cancellation of the policy. Conversely, the insured might not be directly involved in the application process, especially if they are not the proposer, but their information and risk profile are crucial for the policy's underwriting process.
In terms of responsibility for premium payments, the proposer is typically accountable, especially if they are applying for their own coverage or on behalf of another party. These payments must be timely to maintain the policy's active status. Meanwhile, the insured may not be directly responsible for payment unless they are also the proposer, highlighting a financial distinction between the two roles.
Regarding the benefits of the insurance policy, the insured is the primary beneficiary in the event of a claim, such as receiving medical coverage or compensation for damages. However, if the insured is different from the proposer, the policy might specify other beneficiaries, such as family members in the case of life insurance, indicating a differentiation in the benefits distribution.
In legal terms, the proposer enters into a contract with the insurer by signing the insurance application and agreeing to the terms, conditions, and premium payments. The insured, while protected under the contract, might not be the signing party, especially in cases where the insurance is taken out by a third party, demonstrating a legal distinction between the roles within the policy framework.
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Comparison Chart
Definition
Individual/entity applying for insurance coverage.
Individual/entity whose life or property is covered under the policy.
Role in Application
Completes and submits the application; provides detailed information.
Subject of the insurance coverage; may not be directly involved.
Responsibility
Accountable for providing accurate information and paying premiums.
May not be responsible for payments; their risk profile is assessed.
Relationship to Policy
Often becomes the insured but can be different in certain policies.
Protected by the policy; might not be the proposer.
Legal Standing
Enters into a contract with the insurer by agreeing to terms and payments.
Protected under the contract; may not sign it directly.
Compare with Definitions
Proposer
By submitting the application, the proposer agrees to the insurer's terms and conditions.
Signing the application form, the proposer agreed to the premium rates and coverage terms specified by the insurer.
Insured
While not typically responsible for premium payments, their risk profile directly affects policy conditions.
Because the insured had a safe driving record, the premium for the auto insurance was lower.
Proposer
A proposer is the individual or entity that applies for insurance coverage by submitting an application to an insurer.
As the proposer, John completed the life insurance application to secure financial protection for his family.
Insured
Is the beneficiary of the policy, receiving protection or compensation.
The insured received compensation for the loss after a burglary at his insured property.
Proposer
Responsible for accurately disclosing all relevant information and for the payment of premiums.
The business owner, as the proposer, ensures timely premium payments to keep the liability insurance active.
Insured
Protected under the policy's terms, even if not the party who applied or pays for it.
Although not the proposer, the insured was entitled to legal defense under her company's liability policy.
Proposer
Can be the insured but might also apply on behalf of another individual or entity.
The proposer applied for a health insurance policy covering her employees, making them the insured parties.
Insured
The insured is the person or entity covered under an insurance policy for specific risks.
As the insured, Emily's medical expenses were covered when she needed emergency surgery.
Proposer
Initiates the insurance process by providing necessary personal or property details for assessment.
The proposer disclosed her medical history as part of the health insurance application process.
Insured
The focus of the insurance coverage, whose information is critical for the policy's underwriting.
The insured's health records were thoroughly reviewed during the policy application process.
Proposer
To put forward for consideration, discussion, or adoption; suggest
Propose a change in the law.
Insured
One who has or is covered by an insurance policy.
Proposer
To recommend (a person) for a position, office, or membership; nominate.
Insured
Covered by an insurance policy.
Proposer
To offer (a toast to be drunk).
Insured
(insurance) The person or persons whose interests are protected by an insurance policy.
Proposer
To make known as one's intention; purpose or intend
Proposed to buy and run a farm.
Insured
Simple past tense and past participle of insure
Proposer
To form or make a proposal, especially of marriage.
Insured
A person whose interests are protected by an insurance policy; a person who contracts for an insurance policy that indemnifies him against loss of property or life or health etc.
Proposer
Someone who proposes; someone who makes a proposal. propose
Insured
Covered by insurance;
An insured risk
All members of the film cast and crew are insured
Proposer
One who proposes or offers anything for consideration or adoption.
Proposer
A speaker; an orator.
Proposer
Someone who advances a suggestion or proposal;
The suggester of this absurd strategy was a fool
Proposer
(parliamentary procedure) someone who makes a formal motion
Common Curiosities
What responsibilities does the proposer have?
The proposer must accurately disclose all relevant information and is responsible for premium payments.
How does the insured benefit from an insurance policy?
The insured benefits through protection or compensation for covered risks under the policy.
What is a proposer in insurance terms?
The proposer is the individual or entity applying for insurance coverage.
Who is considered the insured?
The insured is the person or entity whose life or property is covered under the insurance policy.
What happens if a proposer provides false information?
Providing false information can lead to claim denials or policy cancellations.
Who pays the insurance premiums?
The proposer is typically responsible for paying the insurance premiums.
Can the proposer and the insured be different individuals?
Yes, especially in scenarios like corporate insurance or life insurance taken out on another person.
Can the insured change the terms of the policy?
Changes to the policy terms usually require agreement from both the proposer (if different) and the insurer.
Is the insured always involved in the application process?
Not necessarily, especially if the insurance is applied for by another party like an employer.
What role does the proposer play after the policy is issued?
The proposer remains responsible for premium payments and must inform the insurer of any relevant changes.
Does the insured have any obligations under the insurance policy?
While not directly responsible for premiums, the insured must comply with policy conditions for claims.
Can a business be both the proposer and the insured?
Yes, businesses often apply for insurance to cover their operations, making them both the proposer and insured.
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Written by
Maham Liaqat
Co-written by
Urooj ArifUrooj is a skilled content writer at Ask Difference, known for her exceptional ability to simplify complex topics into engaging and informative content. With a passion for research and a flair for clear, concise writing, she consistently delivers articles that resonate with our diverse audience.
