Hawaii Insurance Adjuster License Practice Exam

Which term describes the person who has control over an insured property when it is located at the premises?

1. Operator

2. Custodian

3. Insured

4. Owner

The correct answer is: Custodian

The term that describes the person who has control over an insured property when it is located at the premises is "Custodian." A custodian is responsible for maintaining and managing the property and is often considered to have tangible possession or control over it. This role is significant in the context of insurance, particularly when assessing claims, as the custodian's actions or negligence could directly impact the insured property. The custodian is not necessarily the owner or insured in every scenario, though they may share responsibility for the property. In insurance terms, identifying the custodian helps clarify liability and accountability in the event of a loss or damage, as they play a crucial role in safeguarding the property while it is under their control. Understanding the role of the custodian is vital in risk management and insurance practices, as it distinguishes their responsibilities from those of the owner or insured—who may not always be present or involved in the day-to-day management of the property.