Hawaii Insurance License Practice Exam

The concept of a named insured is critical in understanding insurance policies, as this designation grants the individual specified rights and responsibilities under the insurance contract. In this context, the named insured is typically the individual or entity that holds the insurance policy and whom the coverage directly protects.

The property owner is often a named insured, especially if they are the one applying for and paying for an insurance policy that covers a property they own. However, in the given question, the correct answer is the insured's 30-year-old sister who lives with the insured, likely because the policy expressly names her as a covered individual.

The spouse of the insured often has coverage under the same policy as an implied insured, but their name may not specifically appear as the named insured unless explicitly documented in the policy. The same rationale applies to a business partner of the insured; while they may benefit from certain policy coverages, they wouldn’t be considered named insured unless directly listed in the policy.

Therefore, in scenarios where family members or additional individuals are explicitly named in the policy, they can be considered named insureds, allowing them to have certain rights under the policy.