(May, 2015)
DEFINITIONS
13. Insured
Insured is the person or persons named in the
declarations (named insured) and that person’s relatives who live in the household.
In addition, there are a number of persons who are insureds based on conditions
and circumstances:
· Relatives of the named insured who are under the age of
25, enrolled in school fulltime, are still financially dependent on the named
insured and lived in the household prior to moving out to attend school
· Non-relatives of the named insured under the age of 21
who live in the household and are in the named insured’s care or in the care of
a relative of a named insured who also lives in the household. These
non-relatives are also covered while away from the household attending school
fulltime provided they continue to be under the care of the named insured or a
relative resident and had lived in the household prior to moving out to attend
school.
The definition of Insured is further expanded but only
for the Liability section of the policy:
· The named insured’s real estate manager but only within
the scope of his or her duties that relate to the described location
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Example: Prissa is
out of the country on an extended, two-month vacation. She hires a realtor to
rent out her home during the time she is away. The realtor is an insured
under Prissa’s policy while he is acting as her rental agent on the
premises.
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· Any person employed by any of the insureds described in
the first grouping of insureds is an insured but only for incidents involving a
motorized vehicle that is covered by this policy. The insured status is limited
to when that person is performing the duties for which that he or she was
employed.
· Any person that is using a covered motorized vehicle on
the insured premises is an insured but only if the named insured had given that
person permission to use the vehicle. The insured status applies only to
liability resulting from the use of the vehicle.
· Other parties also qualify as insureds, but on a more
limited basis. If a loss situation involves an eligible owned watercraft, golf
cart or animal (usually a pet), coverage extends to persons/organizations who,
with the insured’s knowledge/permission, have some related responsibility for
the loss. This applies only if an insured, as defined in the first grouping of
insured, owns the watercraft, golf cart or animal. The policy grants
insured status for such parties but only to the extent that they are liable for
injury or harm involving such insured property. This applies only if the
insured gave permission for the watercraft, golf cart or animal use. Entities
that are liable for watercraft or animals incidents are not insured if the use
or control or either was business related.
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Example: Millie’s
grandson and his friend Jake are riding Millie’s horses on her property and
on park trails connected to her property. The horse becomes spooked by a
snake, runs off the trail and tramples a hiker. Jake is considered an
insured.
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Example: Jake feels
terrible about the injury he caused. He volunteers to care for Millie’s four
horses for a month. While Jake is grooming one of the horses, a neighbor girl
enters the barn. Jake becomes distracted and the horse bolts to take the
sugar cube out of the girl’s hard. The girl is bowled over and must be taken
to the hospital. Jake is an insured under this situation.
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IMPORTANT: The
vicarious liability protection that the special form policy grants to entities
that are in possession of an insured’s crafts, vehicles or animals only applies
in instances where the use or possession involves an insured’s permission.
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Example: A person
riding in Charla’s golf cart (which she uses to transport supplies and
implements for gardening around her estate) strikes a postal worker in
Charla’s driveway.
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Scenario 1: The driver is a friend, helping Charla do
some landscaping–the situation is covered.
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Scenario 2: The driver has just stolen Charla’s golf
cart and the accident occurred while she was attempting to escape – the
situation is NOT covered.
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HO 00 03–ISO HOMEOWNERS 3 - SPECIAL FORM
COVERAGE ANALYSIS
(July, 2017)
DEFINITIONS
5. The Special
Form homeowner policy considers all of the following to be insureds (with notes
on any exceptions):
(refer to separate definition)
- Your relatives if residents of
"your" household
(meaning relatives who live at the insured location
with the named insured)
- Persons under the age of 21 residing in
"your" household and in "your" care or in the care of
"your" resident relatives
Note: Such
persons must BOTH be younger than 21 AND have a named insured, his or her
spouse or a relative of the named insured/spouse as their caregiver.
The definition of insured includes persons who are
residents of the named insured’s household who are full-time students. In order
for a full-time student to qualify as an insured, he or she must either be
younger than 24 years of age and be related to an insured OR be younger than 21
years of age and be in the care of someone in the named insured’s household.
The following persons are insureds, but ONLY regarding
section II, the liability portion of the homeowner policy:
- Any party having legal responsibility for
either animals or watercraft that is eligible for coverage under the
homeowner policy.
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Examples: Nancer Editbee’s home
is insured by an ISO Special Form policy. Let’s look at whether the following
are insureds under her policy:
- Nancer’s 12 year old neighbor who walks Nancer’s dog (yes, an
insured)
- Frank, who rented Nancer’s RV for the
weekend (no, not an insured – due both to rental and type of property)
- Jeri, a stranger who stole Nancer’s cat
(no, not an insured)
· Paul, a friend from work who borrowed Nancer’s canoe (yes, an
insured)
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Related Court Case: Animal Liability Exclusion Stands as Written
However, anyone in possession of an insured’s watercraft
or animal is denied insured status if any business purpose is involved.
- Any person working for an insured while
operating a motor vehicle that qualifies for homeowner coverage,
- Any person who has the insured’s permission
to use an eligible motor vehicle, but only while on the insured premises.
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Examples: Tom Kinpushion’s
large home (on four acres of land) is insured with a Special Form homeowner
policy. Let’s look at whether the following are insureds under his policy:
- Tom’s visiting childhood friend who hits Tom’s neighbor while
driving Tom’s car out of his garage (no, not an insured)
- Tom’s neighbor, Pete, while using Tom’s lawn tractor in his
(Pete’s) lawn cutting service (no, not an insured)
- Tom’s other neighbor’s daughter Nikki whom Tom hired to cut
Tom’s 4 acres (yes, an insured)
· Tom’s son while using his electric wheelchair at the nearby grocery
store (yes, an insured)
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Related Court Case: “Automobile Exclusion Held Not Applicable To Liability Arising From
Vehicle In Dead Storage”
The 05 11 edition of the Special Form
policy’s definition of insured continues using a clarification. Whenever the
word “insured” immediately follows the word “an,” the phrase refers to one or
more “insureds.” In other words, an “insured” means one or more persons who
have covered status under the policy.
MPL 01–MSO COMMON PROVISIONS FORM ANALYSIS
(October, 2015)
SECTIONS I AND II– GLOSSARY
Insured
Part A
Note: This part
applies to the entire policy.
When the named insured is an individual, the term
insured is:
1. The person who is listed on the Declaration
2. Any of the following but only when residing in the
household of the named insured
A. The named insured’s spouse
B. Any relative of either the named insured or the named
insured’s spouse
C. Any person who is not yet 21 and is in the care of
the named insured or in the care of a relative residing in the household of the
named insured.
3. A fulltime student (A student is considered fulltime
if the school he or she is attending considers the student fulltime), but only
if that student was residing in the household of the named insured prior to
moving out in order to attend school. However, the student is an insured only
if he or she is one of the following:
A. The named insured’s or the named insured’s spouse’s
relative and is less than 24 years old.
B. In the care of the named insured or in the care of a
resident relative and is less than 21 years old.
4. The legal representative of the named insured. This
applies only when the named insured dies. The legal representative is a very
limited insured because the status applies only as regards the named insured’s
property and any liability that results from that property.
An important statement is made in these items that
really applies to all of the above insureds. When the named insured dies, all
persons who were insureds based on the above as of the time of death, remain
insureds as long as they remain household residents.
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Example: Marty is the
named insured. Millie is his wife. Becky and Paul are their children. Marty
dies.
Scenario 1: Becky and Paul live with Marty and Millie.
Becky, Paul and Millie are insureds as long as they remain in the household.
Scenario 2: Becky and Paul each have their own homes.
Becky moves in with Millie and Marty to care for Marty. Paul moves in after
Marty dies. Becky is an insured because she was an insured at the time of
Marty’s death. Paul is not an insured because he moved in after Marty’s
death.
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Part B
Note: This part
applies only to Section II
1. When a person or an organization is considered
legally responsible for either an animal or a watercraft an insured owns, that
person or organization is an insured. This insured status is limited and does
not apply to any who possess the animal or watercraft as part of their business
or to those who possess the animal or watercraft without the insured’s
permission.
2. A person employed by an insured, as defined in Part
A, and operating a covered vehicle is an insured provided the employment is not
related to business. Any other person who uses a covered vehicle on the insured
premises is an insured provided that person has permission to use the vehicle.
