North Carolina Adjuster Practice Exam

Which individual would NOT be considered an "insured" under a Business Auto Policy (BAP)?

1. The policyholder's spouse

2. The policyholder's business partner

3. An employee driving a company vehicle

4. An apprentice under direct supervision

The correct answer is: The policyholder's spouse

In the context of a Business Auto Policy (BAP), the term "insured" typically includes the business entity, employees, and other individuals who might be using the vehicle under the authority of the business. The inclusion of individuals as "insureds" is based on their relationship to the policyholder or the business operations. The policyholder's spouse is not generally considered an insured under a BAP because the coverage primarily extends to individuals who are involved in the business operations or activities directly related to the business. In contrast, the business partner, employees driving a company vehicle, and apprentices under supervision are all engaged in the business's activities, thus falling under the category of insureds. The BAP is designed to cover those who are actively engaged in the business's operations, ensuring that any driving done for business purposes is adequately protected against liabilities that may arise. Therefore, while the spouse may have some indirect association with the business, they do not participate in the business activities or operations in the same capacity as the other individuals listed, which is why they would not qualify as an "insured" under the policy.