Definition of "Liability: limitations on insurers"
Dale Tomalewski , Real Estate Agent
Coldwell Banker Real Estate Services Inc.
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.
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