Which statement best describes an "additional insured"?

An additional insured is best described as a party that has some protection under the policy. This designation allows the additional insured to benefit from the insurance coverage provided by the policy, even though they are not the primary insured party. For example, in a general liability insurance policy, a business may list a client or a partner organization as an additional insured, providing them with coverage for certain liabilities arising from the primary insured's operations.

This arrangement is particularly useful in contractual relationships, such as when a contractor needs to provide proof of insurance to a client. The client, listed as an additional insured, gains certain protections and coverage under the contractor's policy, which can help mitigate risks for both parties.

In contrast, options like an individual paying the insurance premium or being the sole individual who can make claims do not accurately reflect the primary role of an additional insured. The concept involves extending coverage, rather than simply being a financial contributor or making claims. Additionally, holding a policy in trust pertains to a different aspect of insurance and doesn’t define the function or implications of being an additional insured.