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CHAPTER 10 Exclusions

Law of Liability Insurance

Page 88



10.1 The nature of exclusions

Exclusions define the scope of the cover, however, in negative terms: an exclusion qualifies the ordinary and literal reading of one or more of the insuring clauses,1 and limits the extent of the cover provided by them. Exclusions are usually set out in a separate section of liability policies headed “Exclusions”; this is usually sufficient to distinguish them from what insurance law calls “warranties”, which are usually found in a section of policies headed “Conditions”.2

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