Removing a Named Insured

Your response to industry hot topics.

Moderators: Josh, independent guy

Post Reply
ishootfriendlies
Insurance Journal Enthusiast
Posts: 8
Joined: Wed Jul 10, 2013 9:10 am

Removing a Named Insured

Post by ishootfriendlies »

Can a the first named insured remove another named insured with only the signature of the first named insured?

This is a debate I have seen several times. You have an unincorporated partnership, just two partners who split expenses and profit. We have a number of small contractors like this. Let's say John starts the company, then brings in Bill. They are both on the BOP as named insured, but John is the first named insured. Bill leaves the company, and John wants to remove his name and payroll from the policy. Can John's agent make that change without Bill's signature, just with John's signature?

Edit: the policy in question uses ISO forms, and the common policy conditions form is IL 00 17 11 98. Part of it reads as follows:
Changes

This policy contains all the agreements between you and us concerning the insurance afforded. The first Named Insured shown in the Declarations is authorized to make changes in the terms of this policy with our consent. This policy's terms can be amended or waived only by endorsement issued by us and made a part of this policy.
NYagent301
Insurance Journal Addict
Posts: 45
Joined: Fri Aug 17, 2007 11:31 am

Re: Removing a Named Insured

Post by NYagent301 »

If a partnership, both individuals can be interpreted as first named insured since the two individuals comprise the partnership (assuming the type of insured is indicated as partnership). Also splitting hairs if both names are listed on the same line they both can be first named insureds. Of course it can be interpreted otherwise. From a practical point of view the remaining partner should be able to sign off on changes to be made, otherwise you cannot move forward. I would suggest a cancel and rewrite to the remaining individual.
Post Reply