Personal Lines Broker-Agent Practice Test

The term that describes coverage granted to someone added to an insurance policy by endorsement is "additional insured." This designation allows a person or entity to be covered under the policy when they are included through an endorsement, thereby extending the policy's protection to them.

This coverage is typically used in situations where one party requires insurance coverage to protect against liability arising from their relationship with the named insured. For example, if a contractor is working on a property, the property owner may request to be added as an additional insured to protect themselves from risks associated with the contractor’s work.

The other options represent different roles within insurance but do not specifically refer to someone added to a policy via endorsement. "Designated entity" usually refers to organizations or groups identified in a policy. "Named beneficiary" typically pertains to life insurance and describes the individual designated to receive benefits upon the policyholder's death. "Named insured" refers to the person whose name is specifically listed on the policy and who holds the primary coverage. Each of these terms has its distinct purpose and application, making "additional insured" the correct choice in this context.