Arizona Adjuster Practice Exam

In a Business Owners Policy (BOP), who else is typically considered a named insured alongside the primary insured?

1. The business partners

2. The children of the insured

3. Bob's wife

4. None, the primary insured is exclusive

The correct answer is: Bob's wife

In a Business Owners Policy (BOP), the term "named insured" typically extends beyond just the primary insured individual or entity to include specific individuals who have an ownership interest or operational authority in the business. In many cases, the spouse of the primary insured can be considered a named insured, especially if they are involved in the business or have an ownership interest. Including spouses as named insureds helps to ensure that both the business and personal liabilities are covered. This is especially significant in small businesses or sole proprietorships where family members often play substantial roles. The other options, such as business partners or children of the insured, typically would not automatically be designated as named insureds under a BOP unless specifically included in the policy. The primary insured alone is usually the party with the primary obligation under the policy and is frequently the only one automatically recognized without any additional endorsements or policy amendments. Thus, it's important to recognize who qualifies as a named insured to understand coverage implications fully.