What does Purpose Not Designated Exclusion mean? Read on to discover the definition & meaning of the term Purpose Not Designated Exclusion - to help you better understand the language used in insurance policies.
Purpose Not Designated Exclusion
A unique feature of aircraft insurance policies is that they commonly specify in the declarations the intended use of the aircraft (e.g., business and pleasure, industrial aid, or crop dusting). This exclusion may invalidate coverage if the aircraft is used for a purpose other than the one stated in the policy. For the exclusion to apply, the aircraft typically must be used for an unauthorized purpose with the knowledge and consent of the named insured, an executive officer, or partner.
We hope the you have a better understanding of the meaning of Purpose Not Designated Exclusion.