Models cannot target a unit that contains any Character models with a Wounds characteristic of 9 or less with a ranged weapon while that Character unit is within 3" of any of the following: - A friendly unit that contains 1 or more Vehicle or Monster models with a wounds characteristic of 10 or more. - A friendly non-Character unit that contains 1 or more Vehicle or Monster models. - A friendly non-Character unit that contains 3 or more models.
In all cases, if that Character unit is both visible to the firing model and it is the closest enemy unit to the firing model, it can be targeted normally. When determining if that Character unit is the closest enemy unit to the firing model, ignore other enemy units that contain any Character models with a Wounds characteristics of 9 or less.
...unless that CHARACTER is both visible to the to the firing model and it is the closest enemy unit...
Which some read as meaning that CHARACTERs have a special need to be visible, however the very similar wording is used in the Target Selection rules for 8th.In order to target an enemy unit, a model from that unit must be within the Range of the weapon being used (as listed on its profile) and be visible to the shooting model. [Core Rules 8th Edition Pg5]
Essentially if the ignore Line of Sight weapons can ignore this requirement then then can also ignore the same requirement in the CHARACTER/Look Out Sir rules. You'd still need them to be the nearest model if they would otherwise be untargetable because of Look Out Sir.Any rule that states the unit cannot be targeted unless it is the closest target (e.g. Look Out, Sir) does not apply when firing Overwatch. [Core Rules PDF Pg20]
Overwatch is not affected by the rule at all.

Tags: Warhammer 40k | Ruleshammer | 9th edition
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