The "Separation of Insureds" policy condition ensures what?

The "Separation of Insureds" policy condition is designed to provide coverage for each insured individually, ensuring that the actions or circumstances affecting one insured do not impact the coverage or benefits available to another insured under the same policy. This condition treats each insured as if they were covered under their own separate policy, which means that if one insured were to face a claim or liability, it would not diminish the coverage available to another insured.

This is particularly important in situations where there are multiple parties covered under a single policy—such as in partnerships, joint ventures, or corporations—since it protects each insured from the repercussions of claims associated with another insured. It emphasizes the independence of each insured's status when it comes to coverage applicability.

The other options do not accurately reflect the essence of the "Separation of Insureds." Reconsideration of rejected claims pertains to different claims handling protocols, and limits of liability typically apply collectively rather than being shared among insureds. The fourth option relates to the specifics of named versus unnamed insureds, which is not addressed by this condition.