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Policies

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Policies

Exclusion is a policy provision that eliminates coverage for certain acts, property,

types of damage or location, or rather, type of risk. The exclusion policy narrows the scope of

coverage provided by the insuring agreement. Basically, exclusions are the cases for which

the insurance company does not provide coverage. These are the conditions excluded from

the insured event to avoid losses to the company. The policy exclusions limit the coverage of

the policy, as it deals with issues that are outside the control of the Title Company and foe

which the title company assumes no liability. Exceptions, on the other hand, are provisions

which take risks which were originally covered but then excluded by exclusion, and put them

back into coverage[ CITATION Kar08 \l 2057 ]. In other words, exception do not create coverage,

but it bring an otherwise excluded claim back within coverage. An exclusion that retains

coverage includes circumstances. Exceptions restrict the exclusion request to the extent that it

does not apply to the conditions outlined.

Exclusion policy provides guidelines for exposures, in that it describes conditions or

types of loss that are not covered by it. Exclusion is regarded as exception to the general

statement of coverage that is contained in the policy. For instance, typically, an auto liability

policy says that it will pay damages for bodily injury or property damage for which an

insured is considered legally liable due to a car accident. Still on the same policy typically,

would have "exclusions" that, for instance, provide no protection if the injury is deliberately

caused or if the injury is caused by a individual using an insured car without consent.
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A provision that is comparable to exclusion observed in certain policies is referred to

as limitation. A limitation is also an exception to the general coverage statement but only

appropriate in particular conditions or for a given period of time. For example, a health

insurance policy often includes a restriction on "pre-existing conditions," which specifies that

compensation does not apply to a disease or other health condition that has been treated or

diagnosed within a certain period of time, (like seven months) before the start of the policy.

However, the restriction will no longer apply after the policy has been in effect for a defined

period of time (often six months to one year), and subsequent therapy for the pre-existing

disease or situation will be covered.

Since exceptions and limitations eliminate some of the policy's coverage, the law

requires them to be clearly written and very specific[ CITATION Leo07 \l 2057 ]. In the case of a

fair difference of view on how to interpret the significance of an exclusion or restriction, by

adopting the narrowest or most restrictive approach, a tribunal will usually resolve the

conflict in favour of the policyholder.

Work Cited

Fleischhaker, K. A. (2008). The savvy businessperson's guide to property & casualty

insurance : applications and practices. Bloomington, Ind: Authorhouse.

Leonard E Murphy; Andrew B Downs; Jay M Levin & American Bar Association.

Committee on Property Insurance Law. (2007). Property insurance litigator's

handbook. Chicago: American Bar Association, Property Insurance Law Committee.