What are clauses in an insurance contract that indicate circumstances where the company does not need to pay called?

Clauses in an insurance contract that indicate circumstances where the company does not need to pay are referred to as exclusions. These exclusions outline specific scenarios or events that are not covered by the policy, thereby protecting the insurer from certain types of claims. For example, many insurance policies exclude coverage for acts of terrorism, pre-existing conditions in health insurance, or damage caused by war. Understanding these exclusions is crucial for policyholders, as it helps them recognize the limitations of their coverage and the potential financial risks they may face.

In contrast, limitations typically refer to restrictions on the amount of coverage or the time frame in which claims may be made. Conditions outline the responsibilities of both the insurer and the insured under the policy, while endorsements are amendments or additions made to the original policy, often to modify coverage options. These concepts contribute to the overall structure of an insurance contract but do not directly represent situations when the insurer is relieved from the duty to pay claims.