Named Insured refers to any person or organization named on the declarations page. For example in a scenario where John Smith, Jane Smith, and John Doe all reside in the same residence but only John Smith and Jane Smith are named on the declarations page then only John Smith and Jane Smith are considered to be Named Insureds.
Resident Relative (sometimes referred to as Dependent Family Members) refers to person (excluding Named Insureds) related to the named insured by blood, marriage, or adoption, who regularly resides in the insured’s household (including those that are temporarily living elsewhere such as a college student). For example in a scenario where John Smith, Jane Smith, and John Doe all reside in the same residence but only John Smith and Jane Smith are named on the declarations page but John Doe is adopted then only John Doe is considered to be a Resident Relative.
A selection of Named Insured or Named Insured and Resident Relatives indicates that the insured has rejected coverage for those people. For example in a household with one Named Insured John Smith and one Resident Relative John Doe the insured has chosen to exclude Work Loss coverage for the Named Insured Only. In the event of an accident John Doe may claim Work Loss coverage while John Smith (i.e. the excluded Named Insured) cannot.
See policy forms for full details.