Rhode Island Insurance Adjuster Exam

What is another term for household relatives in the context of insurance?

1. Dependent relatives

2. Resident relatives

3. Common relatives

4. External relatives

The correct answer is: Resident relatives

In the context of insurance, the term "resident relatives" refers to individuals who live in the same household as the insured person and are typically considered family members. This designation is important because insurance policies often extend coverage to these individuals, treating them similarly to the insured. The term emphasizes their status as part of the home environment, which can be relevant when determining coverage for liability, property damage, and other related claims. Understanding this term is crucial, as policies may specifically include or exclude coverage based on the relationships and residency of individuals living in the household. This ensures that individuals who are regularly present and dependent on the household's resources are adequately covered under the insurance provisions. In contrast, other terms like "dependent relatives" may imply financial support but do not necessarily denote residency. "Common relatives" and "external relatives" lack the specific connection to living arrangements and therefore do not accurately capture the insurance context of household relatives.