SECTION II–WHO IS AN INSURED

1. The declarations lists the types of entities that can be designated as the named insured. Even though only one type of entity can be selected for each named insured, in the event of multiple named insured's, multiple types of entities can be selected. Each type of entity has a different group of parties that are considered insureds and the conditions under which they are insureds.

a. If the named insured is an individual, the individual is the named insured as well as the named insured's spouse. However, this is not an all-inclusive situation. Their status as named insureds is limited to the operations of the business for which the named insured is the sole owner.

Example: Mr. John, a sole proprietor, sells farm produce. Both he and Mrs. John are insureds. In addition, Mr. John is the sole proprietor in another venture in which he makes wood kitchen cabinets. Here again, both he and Mrs. John are insureds. However, if he and his brother owned the carpentry business as a partnership, coverage would not apply to the partnership.

b. If the named insured is a partnership or joint venture, the partnership or joint venture is an insured. In addition, the members and partners of the named insured along with their spouses are insureds. Their status as insureds is limited to the operation of the named insured's business.

Example: Mr. John and Mr. Joe are partners in a carpentry business. Both partners and their spouses are insureds with respect to the conduct of the carpentry business. However, none of them are insureds under this coverage form for any personal exposures or for any other business activities.

c. If the named insured is a limited liability company, the limited liability company is an insured. In addition, members of the company are insureds but only with respect to the conduct of the named insured's business. The named insured's managers are also insureds but only to the extent of their specific duties as managers.

d. If the named insured is any other organization, it is an insured. In addition, the executive officers and directors are insureds but only to the extent of their duties as such. Stockholders are also insureds but their status is limited to the extent of their liability as stockholders.

e. If the named insured is a trust, the trust is an insured. In addition, their trustees are insureds with respect to their duties within the trust.

2. The following are also insureds:

a. Volunteer workers but only when performing duties related to the named insured's business. Employees, excluding executive officers and managers of a limited liability company, are insureds within the narrow range of activities within the scope of their employment or while conducting the named insured's business. Volunteers and employees are not insureds for bodily injury or personal and advertising injury:

• To the named insured, its partners or members. To other employees but only while in the course of their employment or performance of duties related to the conduct of the named insured's business. To the named insured's volunteer workers but only while they are performing duties related to the conduct of the named insured's business;

• To a relative of any co-employee or volunteer as a consequence of the paragraph above;

• Where an obligation exists to share damages with or repay others for damages because of injury described in the two paragraphs above; or

• When an employee or volunteer provides or fails to provide professional health care services.

Example: The Hometowne Daily Journal is insured under a CGL coverage form. Joe shares some candy with Ken, a visiting salesman. Ken starts to choke. Joe, a trained EMT, attempts the Heimlich Maneuver. Unfortunately, Joe's efforts are unsuccessful and Ken dies before a city emergency unit arrives. Ken's family sues Joe when it learns that the Heimlich Maneuver was not administered properly. Hometowne’s CGL coverage form does not respond to this lawsuit.

Volunteers and employees described above are also not insureds for property damage to property owned, occupied, used by, rented to, in the care, custody or control of, or over which any insured exercises physical control for any reason.

b. Any party other than an employee or volunteer acting as the named insured's real estate manager.

c. Any party having proper temporary legal custody of the property of a deceased named insured but only with respect to liability arising out of or caused by maintenance or use of that property and until a proper legal representative is appointed.

d. A properly appointed legal representative for a deceased named insured but only while carrying out its duties as the legal representative.

Note: The legal representative assumes all of the deceased named insured's rights and duties. This goes beyond the standard insured status and extends to rights to cancellation, conditions and other elements assigned only to named insureds.

3. Any newly formed or acquired organization qualifies as a named insured if no other similar coverage is available to it. This does not include partnerships, joint ventures or limited liability companies the named insured owns or over which it has majority interest. This provision only applies for 90 days after the organization is formed or acquired, or until the end of the policy period, whichever comes first. In addition, Coverage A does not apply to bodily injury or property damage that occurred before acquisition or formation of the organization. Coverage B does not apply to personal and advertising injury arising out of an offense committed before the organization was acquired or formed.

Note: No party is an insured concerning conduct of any current or previous partnership, joint venture or limited liability company not indicated on the declarations as an insured.

Note: In addition to the parties included as insureds as outlined above, ISO has produced numerous endorsements used to add a variety of additional insureds under certain circumstances or limited to specific purposes. Please refer to PF&M Section 270.4-3, ISO Commercial General Liability Coverage Forms Available Endorsements And Their Uses, for more information on these endorsements.