If the named insured is an individual, what is true about coverage for a spouse or other relative under BAC?

• A. They automatically have coverage
• B. There is no automatic coverage for a spouse or any other relative, but the named insured is insured for any covered auto
• C. They are covered only if they co-own a vehicle
• D. They are never covered under BAC

Answer: (B)

In a Business Auto Coverage (BAC) policy, when the named insured is an individual, there isn’t automatic coverage for a spouse or other relative just because they live in the same household. The policy defines who is insured, and unless a relative meets those insured terms for a given vehicle, they aren’t automatically covered. The important contrast is that the named insured themselves is protected for any covered auto, meaning the policy applies to the named individual when they operate a vehicle that qualifies as a covered auto (owned, hired, leased, or borrowed, as defined in the form). So the correct statement reflects that there’s no automatic spouse/relative coverage, while the named insured has coverage for any covered auto they operate.