Louisiana P&C Adjuster Practice Exam

Who is classified as an "insured" under a Business Auto Policy?

1. The policyholder only

2. A policyholder's employee

3. A family member of the policyholder

4. A contract worker

The correct answer is: A policyholder's employee

In the context of a Business Auto Policy (BAP), the classification of an "insured" includes not just the policyholder but also individuals who are covered under the terms of the policy. A policyholder's employee is classified as an "insured" because they are operating the vehicle in the course of their employment or performing duties related to the business operations. This provision ensures that employees have coverage when they are using a vehicle owned by the business for work-related tasks, thereby protecting both the employee and the policyholder from potential liability arising from accidents or damage that may occur during such use. Other options do not fit the definition of an "insured" under typical terms of a Business Auto Policy. The policyholder alone holds direct coverage, while family members and contract workers generally do not automatically receive coverage under the business auto policy unless specifically included. This policy is designed to provide coverage primarily for employees acting on behalf of the business during their work activities.