Regarding ‘Exclusions’ find out the incorrect statement.

Question

Question: Regarding ‘Exclusions’ find out the incorrect statement.

Options:

1.  Exclusions are indicated in the policy
2.  Exclusions are perils or circumstances not covered
3.  Exclusions limit the coverage under the policy
4.  Exclusions do not deal with risk coverage
5.  All the above statements are incorrect.

Answer 1

4. Exclusions do not deal with risk coverage

Regarding ‘Exclusions’, the incorrect statement is 'Exclusions do not deal with risk coverage'.

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More info:

When an item or event specifically not covered by an insurance policy or other contract, it is known as exclusions.

Regarding ‘Exclusions’, the statement 'Exclusions do not deal with risk coverage' is incorrect.