Question

According to the Separation of Insureds provision:

A the policyholder has the right to cancel the policy at any time.
B. lenders have a right to receive a portion of claims payments, based on their insurable interest in the
property.
C. each individual insured covered under a policy is protected as a separate entity, even against other
insureds.
D. the policy will indemnify all loss payees listed on the declarations page, subject to an individual limit
per insured.

Answer 1

The Separation of Insureds provision means each individual insured under a policy is protected separately, including in situations involving claims or legal actions with other insureds on the same policy.

Step-by-step explanation:

According to the Separation of Insureds provision, the correct answer is C. each individual insured covered under a policy is protected as a separate entity, even against other insureds. This means that under an insurance policy, each insured is treated as if they are the only insured and are covered independently of claims or legal action brought by or against other insureds under the same policy. This is particularly relevant in scenarios where there are multiple parties insured under a single policy and a claim involves actions between those individuals.