Which entity can be named as an insured on a policy?

The correct answer is that a trust can be named as an insured on a policy. In insurance terminology, an insured is the person or entity covered by the insurance policy. A trust is recognized as a separate legal entity, allowing it to enter into contracts, hold property, and be designated as an insured. When a trust is named as the insured, it can receive benefits directly under the policy, similar to a corporation or other organizational structures.

In contrast, while individual members of a family can typically be covered under a personal insurance policy as named insureds, they do not represent a singular legal entity in the same way a trust does. A corporation can also be named as an insured, but it is not the only entity that can be designated. Partnerships, like trusts, can be considered entities, but they may have different underwriting or coverage considerations compared to a trust, depending on the specifics of the policy and the risk management needs identified by the insurer. Trusts are often utilized in estate planning to manage assets and provide coverage, making them particularly relevant in discussions of insurance.