California Property & Casualty Broker-AgentGeneral InsuranceEasy
A homeowner's insurance policy contains a clause stating that the insurer is not liable for loss or damage caused by war. This clause is an example of which of the following policy components?
- AConditions
- BExclusions
- CInsuring Agreement
- DDeclarations
Show answer & explanationAnswer & explanation
Correct answer: B. Exclusions
Exclusions specify the perils, property, or types of losses that are NOT covered by the policy. A clause stating that war is not covered directly fits this definition.
Why the other options are wrong
- A. Conditions specify the duties and obligations of both the insured and insurer.
- C. The Insuring Agreement outlines what IS covered, subject to exclusions.
- D. Declarations identify the insured, property, coverage limits, etc., but not specific perils excluded.
Insurance Policy Exclusions
Provisions in an insurance policy that limit or eliminate coverage for certain perils, property, or types of losses.
- Define what is NOT covered.
- Help manage insurer's risk.
- Common examples: war, nuclear hazard, flood, earthquake (in standard policies).
Memory trick: D.I.C.E. helps you roll through policy parts, knowing where each one starts.