A clause withdrawing cover where its performance would contravene an applicable sanctions regime, without anyone being able to determine this at the moment of loss.
The sanctions exclusion clause, often as an endorsement, withdraws cover where its performance would breach a sanctions regime such as that of the US OFAC. Its vice is that it does not tell the insured, at the moment of loss, whether the payee is designated, since no one knows, attribution being months of intelligence work. It thus passes an insoluble question to the insured and makes the very existence of the cover depend on a later administrative act, sometimes taken after the transaction, by an authority that is not party to the contract.
Under strict liability, a lawful ransom payment on 18 November became a violation on the 20th once the payee was designated, with no underwriting model able to represent that variable.
exclusion de sanctions, avenant de sanctions