Legal Definitions - first-named insured

The first-named insured refers to the individual or entity whose name appears first on an insurance policy. This designation typically grants them specific rights and responsibilities that other individuals or entities covered by the same policy may not possess. These often include the authority to make changes to the policy, receive official notices, cancel the policy, and serve as the primary point of contact for the insurance company regarding claims or policy administration.

Here are some examples to illustrate this concept:

• Auto Insurance: Imagine a married couple, Michael and Jessica, who share a car. Michael purchased the car and arranged the auto insurance policy, so his name is listed first, followed by Jessica's. In this scenario, Michael is the first-named insured. This means Michael has the primary authority to contact the insurance company to add a new vehicle, change the coverage limits, or cancel the policy. While Jessica is also an insured driver, she would generally need Michael's involvement or consent for such administrative changes to the policy.

• Homeowner's Insurance: Consider a homeowner's insurance policy for a property owned by a parent, Sarah, and her adult child, Alex, who lives with her. Sarah set up the policy and is listed first. Sarah is the first-named insured. If a major storm damages the roof, Sarah would be the primary person to file the claim, receive communications from the adjuster, and authorize repairs. Alex, while covered by the policy for his personal belongings and liability as a resident, would not have the same direct authority to manage the policy or the claim process for the dwelling itself.

• Business Liability Insurance: A small consulting firm, "Innovate Solutions LLC," holds a general liability insurance policy. The policy lists "Innovate Solutions LLC" as the primary insured party, and its founder, David Lee, is the designated contact person. In this case, Innovate Solutions LLC is the first-named insured. This means the company, through its authorized representatives like David, has the authority to renew the policy, increase its coverage limits, or file a claim if a client sues them for professional negligence. Individual employees, while covered by the policy for actions within their scope of employment, do not have the authority to make these high-level policy decisions for the company.