Which statement accurately describes an employee under the policy terms?

• A. An employee works for the insured and is always a residence employee
• B. A residence employee works for the insured but is not a residence employee
• C. An employee works for the insured but is not a residence employee
• D. A residence employee is the same as an employee

Answer: (C)

The idea being tested is the distinction between an “employee” and a “residence employee” in policy terms. An employee is anyone who works for the insured. A residence employee is a specific kind of employee who performs duties in the insured’s residence. That means not all employees are residence employees—some work for the insured but outside the home (on the property, offsite, etc.). Therefore, the statement that an employee works for the insured but is not a residence employee correctly captures this relationship.

The other choices are off because they either treat residence employees and employees as the same, or claim everyone who is an employee must be a residence employee, or present a contradiction about who a residence employee is.