Exclusions specify.....? - correct answer specify what the insurance company will not cover in terms of types of property, perils or losses. They may
... [Show More] appear in a separate section of the policy or throughout the policy. In open peril policies, coverage is for all perils causing direct physical loss except those specifically named as exclusions. Policies will exclude perils because they are not insurable, or because the basic premium does not cover the additional risk exposure, or because other more specialized contracts more adequately provide coverage. Therefore, property policies exclude:
Casualty Exclusions - correct answer Unless intended to insure the specific risk, general liability policies will exclude:
•losses within the insured's control (e.g., intentional injury).
•extra-hazardous risks (e.g., liquor liability for persons in the liquor business; liability for pollution).
•liability that should be covered by other policies (e.g., workers' compensation and employer's liability that should be covered by workers' compensation insurance; liability for aircraft, autos and watercraft that should be covered by aircraft, auto or watercraft insurance).
•losses that are catastrophic (e.g., war).
•coverage while hazards are increased with the knowledge or control of the insured (e.g., liability for items in the insured's care, custody and control; liability assumed voluntarily under a contract [except for insured contracts]).
Conditions - correct answer Conditions are the clauses or provisions in a policy that specify the rights and responsibilities and obligations of both the insured and the insurer in relation to the policy. These conditions include the following:
•The rights and duties of the insured and the insurer (e.g., subrogation, liberalization, assignment, waiver or change of policy provisions, duties following a loss, suit against the insurer)
•Policy period
•Effect of concealment or fraud
•Cancellation and nonrenewal provisions
•Valuation and claim settlement procedures
•The liability of the insurer when more than one policy covers a loss [Show Less]