South Carolina Personal Lines Practice Exam

Persons who are not named on the declarations page but are protected by the policy are called what?

1. Excluded insured

2. Additional insured

3. Secondary insured

4. Contingent insured

The correct answer is: Additional insured

Persons who are not named on the declarations page but are protected by the policy are best described as additional insured. This term refers to individuals or entities that have been granted coverage under the insurance policy through an endorsement, even though they are not specifically listed on the declarations page. The inclusion of additional insureds is common in liability insurance policies, as it can extend coverage to additional parties such as contractors or lessors in relation to the named insured’s activities or properties. This is particularly useful in commercial insurance, where multiple parties might need to be covered under one policy due to contractual agreements or other obligations. In contrast, excluded insured refers to individuals who are not covered by the policy at all, secondary insured typically would denote a lesser degree of coverage (not a standard term in insurance), and contingent insured does not accurately describe the nature of individuals added to a policy through endorsement. Thus, the ability to provide liability coverage to these additional parties is crucial in various business and legal contexts.