A named-insured exclusion is a clause found in certain insurance policies. It limits coverage for injuries that occur when one named insured causes harm to another named insured under the same policy. This means that if two individuals are listed as named insureds on a policy, and one injures the other, the policy may not provide coverage for that injury.
This term is primarily used in the context of liability insurance, which is relevant in civil law. Named-insured exclusions can affect personal injury claims, property damage, and other liability issues. Users may need to understand this exclusion when filing claims or assessing coverage. Legal templates from US Legal Forms can assist individuals in navigating these issues effectively.
Here are a couple of examples of abatement:
Example 1: A homeowner's insurance policy lists both partners as named insureds. If one partner accidentally injures the other while hosting a party, the named-insured exclusion may prevent the policy from covering the injury.
Example 2: A business liability policy covers two co-owners. If one owner damages the property of the other, the named-insured exclusion may apply, leaving the injured party without coverage for their loss. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Notes |
|---|---|
| California | Named-insured exclusions are commonly upheld in liability policies. |
| Texas | Exclusions may vary based on specific policy language and state regulations. |
| Florida | State law may impose additional requirements for clarity in exclusions. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Difference |
|---|---|---|
| Named insured | An individual or entity specifically listed on an insurance policy. | Named-insured exclusions apply to interactions between named insureds. |
| Additional insured | A person or entity added to an insurance policy for coverage. | Additional insureds may not be subject to the same exclusions as named insureds. |
If you find yourself in a situation involving a named-insured exclusion, consider the following steps:
Browse our library of 85,000+ state-specific legal templates.
It is a clause in an insurance policy that limits coverage for injuries between named insureds.