Liability: Limitations On Insurers
Definition of "Liability: limitations on insurers"
Exceptions to coverage. There is no obligation for an insurance company to pay a claim if:
- the loss is not covered by a policy, or a particular person is not included in the definition of the insured.
- the loss takes place outside the territorial coverage of the policy. For example, there is no coverage under the PERSONAL AUTOMOBILE POLICY (PAP) outside the United States and Canada.
- the loss takes place after the policy has expired.
- the insured involved in the loss was in violation of public law; for example, an insured's car that is damaged as the result of his transporting drugs.
- the insured is in violation of contract law.
- the limit of coverage under the policy is not sufficient to cover a loss.
Popular Insurance Terms
Arrangement of discretionary income, expenses, and investments in a way that enhances after-tax wealth. Insurance policies can be used to increase after-tax income through the tax-deferral ...
Endorsement to the special multiperil insurance (smp) policy that provides all risks damage coverage for real property. This special form provides only minimum cover, leaving the option for ...
Intense combustion resulting in a flame or glow. In order for the fire peril to be covered under property insurance, the fire must be a hostile fire, not a friendly fire. ...
U.S. Supreme Court case in 1868 in which the decision (since overruled) was that an insurance policy was not an instrument of commerce, and thus did not involve interstate commerce ...
Charging the insured an amount that is above the actual premium required for placing and maintaining the policy in force. ...
Period of time an insured is sick and entitled to receive health insurance benefits. ...
Cost per unit of insurance. ...
Bona fide organization that purchases insurance on a group basis on behalf of members. However, a group cannot be formed for the purpose of purchasing insurance since adverse selection ...
Individual retirement account established under the tax reform act of 1986, for a spouse who has unearned income. The maximum annual combined contribution into the worker's and spouse's IRA ...
Have a question or comment?
We're here to help.