How is the term 'person' defined in insurance terminology?

In insurance terminology, the term 'person' is understood to encompass a broad definition that includes both natural persons (individual human beings) and business entities, such as corporations or partnerships. This definition is significant because it reflects the various entities that can enter into contracts, purchase insurance policies, and be involved in the insurance process.

By recognizing both individuals and business entities as 'persons,' the definition captures the wide range of participants in the insurance market. This inclusive terminology is essential for ensuring that the terms of insurance contracts apply not just to individuals seeking personal insurance but also to businesses seeking coverage for their operations and liabilities.

The other options are limited in scope. A focus solely on a physical entity would exclude businesses and other entities that are also considered 'persons' in legal and insurance contexts. The mention of only legal representatives or guardians narrows the definition too much, leaving out direct participants like corporations or partnerships. Lastly, defining 'person' strictly as a corporate entity with shareholders would overlook natural persons, thereby failing to encompass the broader context that insurance must address.