Mysterious Disappearance Exclusion

Mysterious Disappearance Exclusion

In insurance, a clause exempting the insurer from paying for a loss if an insured event occurs without explanation. This applies most commonly to property insurance. For example, an insurance policy on a diamond necklace may not provide the benefit if the necklace is lost or otherwise disappears for no apparent reason. The exclusion exists to prevent insurance fraud.
References in periodicals archive ?
The mysterious disappearance exclusion is now even more mysterious.
Paul denied the claim saying that the disappearance of the sailboat fell under the mysterious disappearance exclusion in Britt's policy.