Washington State Insurance Practice Exam

Who are additional insureds?

1. Individuals or businesses protected by the policy, usually regarding a specific interest, and added by endorsement

2. Individuals listed on the declaration page

3. Defendants engaged in hazardous activities

4. Those who pay for specific out of pocket expenses for medical and miscellaneous costs

The correct answer is: Individuals or businesses protected by the policy, usually regarding a specific interest, and added by endorsement

Additional insureds are individuals or businesses that are protected by an insurance policy, usually regarding a specific interest, and they are added to the policy by an endorsement. This endorsement extends the coverage of the policy to include the additional insured, providing them with certain rights and protections under the policy. Option B, individuals listed on the declaration page, may not necessarily be additional insureds unless they meet the specific criteria outlined in the policy and are added through an endorsement. Option C, defendants engaged in hazardous activities, is not a correct definition of additional insureds. Additional insureds are not defined by their engagement in hazardous activities, but rather by the specific interest they hold in relation to the policy. Option D, those who pay for specific out of pocket expenses for medical and miscellaneous costs, does not accurately describe additional insureds. Additional insureds are designated parties who benefit from the insurance coverage provided by the policy, typically for liability protection, rather than those who pay for specific out-of-pocket expenses.