Which types of policies do not normally exclude catastrophic losses?

The correct answer indicates that both types of policies mentioned—personal auto policies and marine policies—typically do not exclude catastrophic losses. In this context, catastrophic losses refer to significant, unforeseen damages that can cause substantial financial impact, such as those resulting from natural disasters or large-scale incidents.

Personal auto policies generally provide coverage for a wide array of risks associated with owning and operating a vehicle, including damage from accidents, theft, and even natural disasters affecting vehicles. The overarching purpose of auto insurance is to protect drivers from significant financial losses, including those that could be classified as catastrophic.

Similarly, marine policies, which cover watercraft and related risks, are also designed to address a variety of potential damages, including those that might arise from catastrophic events like storms or accidents at sea. Marine insurance tends to encompass a broad range of coverage that safeguards against large-scale risks, acknowledging the unpredictable nature of maritime ventures.

This understanding illustrates why catastrophic losses are not typically excluded from either of these insurance types, as both personal auto and marine policies are structured to provide comprehensive protection for individuals against wide-ranging and significant risks.