Louisiana P&C Adjuster Practice Exam

Who is not considered an "insured" under a Business Auto Policy?

1. A policyholder's minor child

2. A policyholder's employee

3. A family friend using the car

4. A company manager with her own vehicle

The correct answer is: A family friend using the car

In the context of a Business Auto Policy, the term "insured" typically refers to individuals or entities that are protected under the policy while using a covered vehicle. Generally, those defined as insureds include the policyholder, employees of the policyholder while using the covered vehicle for business purposes, and any family members living within the same household as the policyholder. A family friend using the car does not fall under the definition of insured since Business Auto Policies typically do not extend coverage to individuals who are not related to the policyholder or employees using the vehicle. This is particularly true unless expressly stated in the policy details. Such usage by a non-commercial driver is usually considered personal, not business, rendering them ineligible for coverage under the business context of the policy. On the other hand, a minor child of the policyholder, an employee driving the vehicle for business, and a company manager using her own vehicle for company purposes may all be covered under the policy, as their use aligns with the intended insured status based on the definition of insured parties.