Final answer:
The insured under the life insurance policy on Elmo's life, provided by Famed Insurance Company, is Elmo. Dhani, as the beneficiary, will receive the death benefits from the policy. The agent or broker and the insurance company are not the insured; the first is the intermediary, and the latter is the provider of the coverage.
Step-by-step explanation:
In the context of a life insurance policy, it's important to understand the various parties that are associated with it. The insured is the person whose life is covered by the life insurance policy, which in your query is Elmo. Dhani, being the beneficiary, is the individual designated to receive the death benefits from the policy when the insured person passes away. Lastly, the insurance company that issues the policy, in this case, Famed Insurance Company, is the entity that provides the coverage and agrees to pay the death benefits to the beneficiary upon the insured’s death. So, the correct answer to who is the insured under this policy is Elmo.
Additionally, the agent or broker is simply the intermediary who sells the policy, but is not the insured. The insurance company is sometimes confused to be the insured but it is actually the provider of insurance. Thus, it's crucial to differentiate these roles to avoid misunderstandings regarding life insurance policies.