Which of the following statements about operator's policies is TRUE?

The correct choice states that operator's policies do not cover damages incurred while a person other than the named insured is operating the motor vehicle. This is an important characteristic of operator's policies. They are designed to offer coverage specifically for the named insured and typically do not extend to other drivers unless they are specifically added to the policy. This limitation is crucial because it underscores the personal nature of the insurance, which is tied directly to the individual who holds the policy rather than any driver who may operate the vehicle.

In contrast, options that suggest coverage for all drivers or that physical damage is included do not accurately represent the nature of operator's policies. Standard liability policies may provide broader coverage that includes permissive drivers or physical damage, but operator's policies specifically limit their scope to the named insured only. Additionally, while premiums for operator's policies can vary, they are not universally higher than standard liability policies; they are often tailored to the risk profile of the insured.