Which clause in an insurance policy allows the insurer to deny a claim if the insured has another insurance policy on the same risk?

The correct answer is the escape clause. An escape clause in an insurance policy provides that if the insured has another policy covering the same risk, the insurer can deny a claim. This clause is designed to protect the insurer from paying out more than they believe is appropriate when multiple policies might cover the same loss.

In the context of insurance, having overlapping coverage can lead to challenges in determining liability and the amount payable for a claim. The escape clause ensures that situations involving multiple insurers do not lead to double compensation or disputes regarding who is responsible for a loss.

The other clauses mentioned serve different purposes:

• An exclusion clause specifies certain conditions or risks that are not covered by the policy.

• A limitation clause sets restrictions on the amount payable or the circumstances under which the insurer will pay.

• A subrogation clause allows the insurer to recover costs from a third party responsible for a loss after they have paid the insured.

These distinctions highlight the specific function of the escape clause in managing situations where multiple policies could apply to the same loss.