Which term describes a situation or condition not included in an insurance policy?

The term that describes a situation or condition not included in an insurance policy is "exclusion." In the context of insurance, exclusions are specific conditions or circumstances that are deliberately left out of coverage by the insurer. This means that, in the event of a claim related to an excluded situation, the policyholder would not receive benefits or compensation from the insurance policy. Understanding exclusions is crucial for policyholders as it helps them recognize the limitations of their coverage and understand what risks they are still responsible for.

Riders, on the other hand, are provisions added to an insurance policy that modify its terms, potentially expanding coverage. An addendum is often used to add additional information or clarify certain aspects of the policy but does not typically encompass situations that are outside coverage. A clause refers to any part of the contract that outlines specific terms, conditions, or provisions, which can include exclusions but does not solely represent situations that are not covered. Thus, recognizing the distinction of exclusions is essential when evaluating an insurance policy's comprehensiveness.