Which term describes a provision that excludes certain risks from coverage?

Which term describes a provision that excludes certain risks from coverage?

• A. Endorsement
• B. Rider
• C. Premium
• D. Exclusion

Answer: (D)

An exclusion is a provision that excludes certain risks from coverage. It specifies losses or situations the policy will not pay for, helping limit the insurer’s exposure. Endorsements or riders, by contrast, are additions or amendments that change the coverage you have—either adding benefits or narrowing/extending them, but they’re not the standard list of things that aren’t covered. The premium is the price you pay to keep the policy in force, not a coverage limitation.

An exclusion is a provision that excludes certain risks from coverage. It specifies losses or situations the policy will not pay for, helping limit the insurer’s exposure. Endorsements or riders, by contrast, are additions or amendments that change the coverage you have—either adding benefits or narrowing/extending them, but they’re not the standard list of things that aren’t covered. The premium is the price you pay to keep the policy in force, not a coverage limitation.