Other Than Life (OTL) Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

Which of the following is an exclusion in all-risk coverage?

Earthquake damage

In the context of all-risk coverage, exclusions are specific perils or types of damage that are not covered by the insurance policy. Earthquake damage is commonly excluded from all-risk policies, as these policies typically cover a wide range of risks but often draw the line at certain natural disasters due to the high potential for loss and the difficulty in predicting or controlling such events.

The exclusion of earthquake damage helps insurers manage their risk and keep premiums at a reasonable level. In contrast, theft of property, water damage from a burst pipe, and fire damage to the property are generally covered under most all-risk policies, provided they do not fall under other specific exclusions in the policy terms. Therefore, selecting earthquake damage as an exclusion accurately reflects standard practices within the insurance industry concerning all-risk coverage.

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Theft of property

Water damage from a burst pipe

Fire damage to the property

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