known loss provision
Language commonly included in the insuring agreement of a liability policy
that stipulates that the policy does not apply to losses of which the insured
was aware prior to the policy period. In some policies, this restriction appears
in the exclusions section of the policy. Some policies go a step further, stipulating
that where the insurer has issued successive policies, the only policy
that will apply is the one in force when the insured first becomes aware of
the loss. The difference in these two types of provisions is most dramatic when
progressive injury or damage goes undetected over multiple policy periods.
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