Hat: article wrapped by parents (6)
I believe the answer is:
panama
'hat' is the definition.
(I know that Panama is a type of hat)
'article wrapped by parents' is the wordplay.
'article' becomes 'an' (indefinite article).
'wrapped by' is an insertion indicator (inserted letters get wrapped up).
'parents' becomes 'pama' (Pa and Ma).
'an' inserted inside 'pama' is 'PANAMA'.
(Other definitions for panama that I've seen before include "Great American canal or tropical hat" , "American canal or kind of hat" , "Criticise" , "Canal state; hat" , "Headgear for a canal" .)