GCE Commerce 1989 Question 19

Question 19

Insurance

Under the law of insurance, exemption clauses

  1. A.enable the insured to claim on the insurance company
  2. B.protect the insurance company under the contract
  3. C.guard against occurrence of the insured events
  4. D.protect a third party under the contract
  5. 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.