Los Angeles Claims Adjuster Property and Casualty Practice Exam 2025 - Free Claims Adjuster Exam Questions and Study Guide

In a business owned solely by the insured, the correct identification of insured parties typically includes the insured individual and their spouse. This is because, in many insurance policies concerning sole proprietorships, the spouse may be included as an insured party due to the nature of their shared household and potential involvement in business operations.

The rationale for this inclusion often hinges on the concept that spouses may assist or participate informally in the business, thus necessitating coverage to protect both parties from liability or loss.

While business partners, domestic helpers, and customers can have certain permissions or liabilities related to the business, they do not fall under the direct definition of "insured" within a sole proprietorship's insurance policy in the same way the insured and their spouse would. Therefore, recognizing the insured and their spouse accurately reflects the parties considered insured in this context.