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
Rating method for commercial fire insurance according to a predetermined schedule. Published by A. F. Dean in 1902, this method was the first comprehensive qualitative analysis procedure to ...
Maximum that an insurance company can underwrite. The limits of coverage that a property and casualty company can underwrite are determined by its retained earnings and invested capital. ...
Retirement plan for an individual based on a single contract with a benefit based on current earnings, as if they will remain static until normal retirement age. As the earnings of the plan ...
Insurance company's net investment income divided by its invested assets. The greater the yield, the better the investments that are being made. ...
Person who transfers rights under an insurance or mortgage contract. ...
Law that established rules and regulations to govern private pension plans, including vesting requirements, funding mechanisms, and general plan design and descriptions. For example, three ...
Legal recourse available to survivors of a person who suffers a wrongful death. Under common law, only an injured person had the right to sue for damages. If a wrongfully injured person ...
Business involved in buying and selling securities and mutual funds. ...
Endowment period of time, in life insurance, at which the face amount of the policy is payable to the insured. ...
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