Who should be considered a named insured?

A named insured refers to an individual specifically identified in an insurance policy as having coverage under that policy, which typically comes with certain rights and responsibilities. In this case, the 30-year-old sister who lives with the insured is likely considered a named insured because, depending on the terms of the policy, relatives who reside in the same household can often be included in the coverage. This is common in many homeowner or auto insurance policies where family members living in the same house are deemed to be covered under the policyholder’s insurance.

While the other choices may include individuals who have some connection to the insured, they don’t necessarily meet the criteria to be considered named insureds. A sibling living away does not reside in the household, the primary policyholder typically defines the individual who the policy is primarily issued to, and simply having a spouse does not automatically confer named insured status unless specified in the policy. Therefore, the sister living with the insured is the most appropriate choice for being considered a named insured within the parameters established by typical insurance policy terms.