No Insurance Policy Covers Every Possible Risk of Loss & That is Why Exclusions Exist
See the full video at https://youtu.be/lst8YOxl7Fc
Exclusions
An exclusion is a provision of an insurance policy referring to hazards, perils, circumstances, or property not covered by the policy. Exclusions are usually contained in the coverage form or causes of loss form used to construct the insurance policy. One common exclusion is a clause that prohibits coverage for an intentional loss.
In some states, like California, a statute prohibits insurance of intentional acts (In California, it is Insurance Code § 533). It should be axiomatic that to pay for an intentional loss defeats the purpose of insurance, which is:
[T]he fundamental principle that insurance coverage is intended to indemnify for fortuitous events, not events which the insured anticipates and can avoid. Panorama Vill. Condo. Owners Ass’n. Bd. of Directors v. Allstate Ins. Co., 144 Wash.2d 130, 26 P.3d 910 (Wash. 2001).
To comply with statues like the California statute, insurance policies contain specific exclusions to limit the coverages available to indemnity for fortuitous or accidental losses. However, not all apparently intentional acts are covered by the exclusion.
Insurance policies contain specific exclusions to limit the coverages available to indemnity for fortuitous losses.
© 2020 – Barry Zalma
Barry Zalma, Esq., CFE, now limits his practice to service as an insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He also serves as an arbitrator or mediator for insurance related disputes. He practiced law in California for more than 44 years as an insurance coverage and claims handling lawyer and more than 52 years in the insurance business. He is available at http://www.zalma.com and zalma@zalma.com.
Mr. Zalma is the first recipient of the first annual Claims Magazine/ACE Legend Award.
Over the last 53 years Barry Zalma has dedicated his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to make it possible for insurers and their claims staff to become insurance claims professionals.
https://zalma.com/zalmas-insurance-fraud-letter-2/ Read last two issues of ZIFL here.
Go to Barry Zalma videos at Rumble.com at https://rumble.com/c/c-262921
Read posts from Barry Zalma at https://parler.com/profile/Zalma/posts
Listen to the Podcast: Zalma on Insurance https://anchor.fm/dashboard/episodes Zalma on Insurance
Go to Barry Zalma on YouTube- https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg/
Go to the Insurance Claims Library –https://zalma.com/blog/insurance-claims-library/