South Carolina Personal Lines Practice Exam

Who is considered insured under property and casualty insurance?

1. Only named individuals on the policy

2. Any resident of the property

3. Anyone covered under the policy, even if not named

4. Only parties to the insurance contract

The correct answer is: Anyone covered under the policy, even if not named

In property and casualty insurance, the term "insured" encompasses a broader definition than just the named individuals on the policy. The correct answer identifies that anyone covered under the policy, regardless of whether they are specifically named, is considered insured. This includes additional insureds who may be added to the policy for coverage purposes, such as family members, relatives, or other residents living in the insured property. This flexibility is essential in ensuring that all relevant parties are protected in case of a loss, injury, or damage that may occur and fall within the policy's coverage parameters. It acknowledges that various individuals might have a legitimate interest in the insured property or the operations covered by the policy, thereby reinforcing the intent of the insurance contract to offer comprehensive protection. The other options are too limited in scope, focusing only on specific individuals or groups, thereby failing to capture the full breadth of who might be considered insured under these forms of insurance.