Question 19
InsuranceUnder the law of insurance, exemption clauses
- A.enable the insured to claim on the insurance company
- B.protect the insurance company under the contract
- C.guard against occurrence of the insured events
- D.protect a third party under the contract
- E.protect the insured against the insurance company.
Show the answer and explanation
Answer: B (protect the insurance company under the contract)
Explanation
Exemption (exclusion) clauses list losses the insurer will not pay for, so they protect the insurance company.