Rhode Island Insurance Adjuster Exam

Where can the limits of liability be found in a casualty insurance policy?

1. Declarations

2. Conditions

3. Exclusions

4. Endorsements

The correct answer is: Declarations

The limits of liability in a casualty insurance policy are typically outlined in the Declarations section. This part of the policy provides key information, including the insured's name, coverage specifics, the effective dates of the policy, and the limits of insurance for each type of coverage. It serves as a summary of the essential terms of the insurance agreement, making it easy for policyholders and adjusters to identify how much risk is covered and what the maximum payout would be in the event of a claim. The other sections mentioned, such as Conditions, Exclusions, and Endorsements, serve different purposes. Conditions describe the duties and obligations of both the insurer and the insured. Exclusions specify what is not covered under the policy, effectively limiting the scope of the insurance. Endorsements modify or add to the original policy by providing additional coverage or changing terms. While these sections are important in understanding the overall policy, the Declarations are where the specific limits of liability are clearly stated.