HO 0003–AAIS SPECIAL FORM HOMEOWNERS ANALYSIS

DEFINITIONS

The definitions section appears immediately after the Agreement.

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

• 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 using a covered motorized vehicle on the insured premises is an insured but only if the named insured gave 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, 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 animal incidents are not insured if the use or control or either was business related.

IMPORTANT: The vicarious liability protection that the special form policy grants to entities in possession of an insured’s crafts, vehicles or animals only applies in instances where the use or possession involves an insured’s permission.