General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An accident and health policy's insuring clause states that it covers 'sickness and accidental bodily injury.' The clause identifies the:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The insuring clause names the perils - the causes of loss the policy covers. Here, sickness and accidental bodily injury are the events that, if they occur, trigger benefits. Policies can cover named perils or, in broader forms, all risks except those excluded. Hazards are conditions increasing loss likelihood, premiums are the price, and exclusions appear in a separate section.
Why the other options are wrong
- B) Hazards are conditions that raise the chance of loss; they are underwriting considerations, not covered events.
- C) Premiums are stated in the policy's premium and consideration provisions, not the insuring clause.
- D) Exclusions are a separate policy provision that limits coverage; the insuring clause defines what is covered.
Memory hook
Insuring clause = the menu of perils. Sickness and injury are the dishes.