Which policy provision specifies losses not covered by the policy?

Which policy provision specifies losses not covered by the policy?

• A. Declarations
• B. Exclusions
• C. Territory
• D. Endorsements

Answer: (B)

Exclusions are the part of a policy that spells out losses or situations the policy will not cover. They come after the insuring agreement, narrowing what is insured by listing specific perils, conditions, or circumstances that are excluded from coverage—like certain natural disasters, intentional acts, or government actions. This helps explain why a claim isn’t paid even when it seems related to the insured risk. By comparison, declarations identify who and what is insured and the limits, territory defines geographic coverage, and endorsements modify or add coverage; none of these list noncovered losses in the same way exclusions do.

Exclusions are the part of a policy that spells out losses or situations the policy will not cover. They come after the insuring agreement, narrowing what is insured by listing specific perils, conditions, or circumstances that are excluded from coverage—like certain natural disasters, intentional acts, or government actions. This helps explain why a claim isn’t paid even when it seems related to the insured risk. By comparison, declarations identify who and what is insured and the limits, territory defines geographic coverage, and endorsements modify or add coverage; none of these list noncovered losses in the same way exclusions do.