Both
named insureds under an auto policy died in June 2007.
Rams Head was listed as a
named insured under each policy, and each included within the definition of "an insured" the members and managers of the
named insureds, but only to the extent of their respective roles.
The agent wants everyone listed as
named insureds, but we believe that the owner living in the home is the
named insured, with the other siblings being additional insureds.
When a trust or LLC is named an additional insured or additional interest on the policy covering the property, the beneficial owners remain as the
named insureds and don't need a separate renter's policy or personal liability policy for the property.
Named insureds may balk at the insurer accepting coverage for additional insureds, even if the facts and policy language support that decision.
There are several significant potential problems, however, when there are multiple
named insureds. First, any one of the
named insureds can submit claims and potentially exhaust the policy limits, leaving no coverage available for other insureds under the policy.
* Distinguish between
named insureds and other insureds in the CGL form
Because typically additional insureds, especially if added by a blanket endorsement, are not
named insureds under the policy, "b" applies.
This is so even in the case of a leased vehicle, where both the lessor and the lessee may be
named insureds under the policy, and the lessee damages the vehicle while impaired.
Subsidiary means any corporation or limited liability company of which one or more
named insureds directly own, individually or collectively, on the Start Date of this policy, more than fifty percent (50%) of the issued and outstanding voting stock or membership interest; and which was disclosed in the application and other information and material submitted to us in applying for this policy.
The LLCs with ownership interests were not listed as
named insureds on either the commercial or homeowner policies.
With the introduction of the 2001 CGL forms, trustees of trusts that are
named insureds are included as insureds, thus eliminating the need for the additional insured endorsement.
