Pollution Exclusion
Liability insurance exception for pollution coverage that is not both sudden and accidental from the insured's standpoint. As a result of the damage suits from such incidents as the chemical pollution at Love Canal, insurance companies began to modify pollution coverage in their liability policies in the 1970s. First, companies changed coverage to apply only if pollution was "sudden and accidental," rather than "gradual." But some courts ruled that "sudden and accidental" could encompass several years of pollution problems. Consequently, the insurance services office (ISO) introduced a new comprehensive general liability insurance (CGL) policy in 1985 (replaced today by the commercial general liability form) that excluded coverage for nearly all types of pollution damage, leaving only limited liability coverage for pollution originating away from an insured's premises.
Popular Insurance Terms
Section of the Internal Revenue Code that provides for the taking of the proceeds from one life insurance policy or annuity and the reinvesting of these proceeds immediately in another life ...
Property to be insured, or that is insured, which is located within the specific geographical region falling under the auspices of the fire department. ...
Interest rate credited on three-month United States Treasury bills. ...
Common element in property insurance that excludes electrical damage or destruction of an appliance unless the damage is caused by a resultant fire. ...
Life insurance policy option under which the dividends that have accrued may be applied to mature the policy as endowment insurance. ...
Same as term: engineering approach; human approach ...
Variable-rate bonds whose coupon and value increases as interest rates decrease. ...
worth of each accumulation unit at the end of each valuation period for a variable annuity. This value is similar to that of the net asset value for a mutual fund. ...
First historical mortality table used for the calculation of premium rates for group annuities. This table was subsequently replaced by the group annuity table, 1971. ...
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