Title 31A Chapter 21 Section 308

Insurance Code
Insurance Contracts in General
Section 308
Limitations on loss to be borne by insurer.

            

31A-21-308.   Limitations on loss to be borne by insurer.

            (1) An insurance policy indemnifying an insured against loss may by clear language limit the part of the loss to be paid by the insurer to a specified or determinable maximum amount, to loss in excess of a specified or determinable amount, to a specified proportion of the loss which may vary with the amount of the loss, or to any combination of these methods. If the policy covers various risks, different limitations may be provided separately for each risk, if the policy clearly states that.

            (2) A policy indemnifying an insured against loss of or damage to property may limit the part of the loss to be paid by the insurer to a percentage of the total loss that corresponds to the ratio of the insured sum to a specified percentage of the value of the insured property.


Enacted by Chapter 242, 1985 General Session