What is a key characteristic of an additional insured?

An additional insured is a person or entity that is granted certain coverage under an insurance policy, typically for liability purposes. This arrangement is often used in contractual relationships where one party wishes to ensure that they are protected under another party's insurance policy.

The key characteristic that makes option B correct is that additional insureds do not have ownership rights to the policy in which they are included. They are merely provided coverage and do not have the power to make changes to the policy or its terms, nor do they own the policy itself. This means they cannot decide on the inclusion of other parties or modify coverage levels, as those responsibilities lie solely with the policyholder.

Recognizing that additional insureds usually do not pay premiums directly to the insurer is also important. The costs related to the policy—like premiums—are typically the responsibility of the primary policyholder, not the additional insured. This aspect is crucial for understanding the relationship between the named insured and additional insureds.

This understanding helps clarify the role of additional insureds in insurance agreements, reinforcing that while they benefit from the coverage, they remain distinct from the policyholder in terms of financial obligations and control over the policy.