Exclusions are used in insurance policies for all of the following reasons EXCEPT
A)to reduce moral hazard.
B)to waive policy conditions.
C)to eliminate coverage for uninsurable perils.
D)to eliminate coverage not needed by typical insureds.

Question

Quizplus · Accepted Answer

Exclusions are used to reduce moral hazard by preventing insureds from intentionally causing losses to collect insurance benefits, to eliminate coverage for uninsurable perils that are deemed too risky to insure, and to eliminate coverage not needed by typical insureds. However, exclusions are not used to waive policy conditions, which are requirements that insureds must meet in order to receive benefits under the policy.

Exclusions Are Used in Insurance Policies for All of the Following