severability of exclusions

Severability of exclusions is a term stating that although an exclusion applies to one or more insured(s) under a policy, the exclusion does not necessarily apply and preclude coverage for the other insureds.

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Assume that a directors and officers liability policy excluding coverage for fraudulent and criminal acts also contains a severability provision that applies to the policy's exclusions. Under these circumstances, the fraudulent actions of one director would not bar coverage for other directors who were not a party to these fraudulent acts (that bar coverage for the director who committed them).