South Carolina Personal Lines Practice Exam

What are persons covered under a policy called, regardless of whether they are named?

1. Beneficiaries

2. Insureds

3. Dependents

4. Contractors

The correct answer is: Insureds

Individuals covered under a policy, regardless of whether they are explicitly named, are referred to as insureds. This terminology encompasses a broader category that includes anyone protected by the insurance contract, which may consist of the named insured in the policy as well as other parties who may have coverage. For example, in a homeowners policy, not only the policyholder (named insured) but also family members and other residents may be considered insureds, thus enjoying the protection provided by the policy. In the context of insurance, beneficiaries generally refer to those who receive benefits from a policy in the event of a claim, and while dependents might receive benefits under specific circumstances, such as health insurance, they do not cover the full scope of individuals protected under a policy. Contractors are typically not covered under a personal lines policy unless specifically included; they are often considered separate entities in terms of liability and risk. Therefore, insureds is the most accurate term to describe all persons covered under an insurance policy.