What is an exception in an insurance policy

Exception (to Exclusion) — circumstances included in an exclusion that retain coverage. Exceptions limit the application of the exclusion such that it does not apply to the described circumstances.

What is an exception in life insurance?

A life insurance exclusion is a situation or circumstance that prevents your beneficiaries from receiving your death benefit. Essentially, it means that certain causes of death are not covered by the policy.

Where are exclusions found in an insurance policy?

While most exclusions can be found after the main coverage sections in your policy (named perils, personal property, personal liability, additional coverage, and medical payments to others), you'll also notice exclusions in the definitions, conditions, and endorsements sections.

Why are exclusions used by insurance?

Insurance exclusions are policy provisions that waive coverage for certain types of risks or events. Policy exclusions create a balance between coverage for fortuitous losses (losses you couldn't have reasonably prepared for) and the need to remain solvent in order to pay those claims.

What are the elements of an insurance policy?

Every insurance policy has five parts: declarations, insuring agreements, definitions, exclusions and conditions. Many policies contain a sixth part: endorsements. Use these sections as guideposts in reviewing the policies.