A policy exclusion can serve all of the following purposes, EXCEPT:

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A policy exclusion can serve all of the following purposes, EXCEPT:

A. State the coverages exclusively provided by the policy.
B. Eliminate coverage for uninsurable loss exposures.
C. Help manage morale hazards.
D. Eliminate coverages requiring special treatments.

Answer: A. Stating the coverages exclusively provided by the policy is not a purpose of exclusions.

Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

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