What section of an insurance policy specifies what is not covered?

• A. Definitions
• B. Exclusions
• C. Conditions
• D. Limitations

Answer: (B)

The section of an insurance policy that specifies what is not covered is the exclusions. This part clearly outlines specific situations, circumstances, or types of losses that the insurance policy does not provide coverage for. Understanding the exclusions is crucial for policyholders to know the limitations of their coverage, ensuring they are aware of the risks they are still responsible for and cannot claim compensation for under their policy.

The exclusions section helps avoid confusion and disappointment when a claim is filed, as it serves as a reference indicating what the insurer will not pay for. Having a clear understanding of these exclusions can help policyholders make informed decisions about their coverage and whether they might need additional insurance for certain risks.

In contrast, other sections like definitions clarify the terms used in the policy, conditions specify the obligations both parties must fulfill, and limitations refer to restrictions on benefits or maximum amounts paid. However, it is the exclusions that directly address what is not included in coverage, making them essential for comprehensive understanding and risk management.