Which concept ensures that claims are honored for each insured separately in a policy?

The concept that ensures claims are honored for each insured separately in a policy is known as severability. This principle allows each insured party under a policy to be treated independently when it comes to the claims process. Therefore, if one insured person violates any terms of the policy, it does not affect the coverage of other insured individuals under the same policy. This is particularly important in scenarios where multiple parties are insured, such as family members or co-owners of a property, enabling each individual to maintain their own rights to coverage.

In contrast, abandonment refers to the relinquishing of rights to a property or claim, insurable interest pertains to the financial stake an insured party must have in the subject matter of the insurance, and liberalization relates to policy changes that could provide broader coverage without extra cost but does not specifically address the individual treatment of claims among insured parties.