Malcolm accidentally shot and seriously injured Dwight. The incident occurred in the home of Malcolm's parents but Malcolm had lived away from the home for many years. However, during the year in which the accident occurred, Malcolm had visited and lived in the house for long periods.

When a verdict of $1.3 million was awarded to Dwight because of the injury, Malcolm requested coverage from his parent's homeowners carrier, Travelers, who refused to honor the request.

Click here to see how the courts ruled.

The primary question to answer at the time a claim is presented is whether the individual who caused the damage is an insured. When the named insured causes the damage, the answer is obvious but when anyone else causes the damage, the answer is found either in the Definitions section or in the Who is An Insured section. These sections should be read very carefully because complexities of relationships can result in very significant gaps in coverage.

Click here to read the PF&M analysis of the AAIS, ISO, and MSO Homeowners definitions of insured. While there are many similarities, there are also differences within the forms that could affect a client.

The Personal Lines Producer Risk Evaluation System General Information Questionnaire asks very specific questions about the named insured's relationships. It asks questions regarding marital status and requires a listing of individuals whom the named insured may expect to be covered as insureds under the policy. This listing can help you address potential gaps in coverage when the coverage form and the named insured's expectations do not match.

Click here to review the Single Family Owner Occupied Personal Risks Questionnaire that asks these important questions.

You can see from the court case above that "who is an insured" can be the million dollar question! Consider sending a note or an email to your personal lines customers and bringing this to their attention.

Click here for a Business Building Letter you could use to let your clients know how important it is to know who is insured under their policies.