The territorial limits for the Aviation policy includes all of the following EXCEPT:

The territorial limits for an Aviation policy typically encompass a range of regions where the policy coverage applies. The correct answer indicates that US Possessions are not included in these territorial limits.

The reason US Possessions do not fall under the specified territorial limits is due to how these areas are defined legally and geographically in insurance terms. While many insurance policies cover the continental United States and territories directly associated with it, US Possessions can often operate under different regulatory frameworks or unique risk profiles, prompting exclusions in coverage.

In contrast, the other options listed—Continental US, International waters, and Alaska—are considered more conventional territories within aviation insurance policies. The coverage in these regions aligns more closely with aviation operations, standard flight paths, and regulatory compliance with the Federal Aviation Administration (FAA). Thus, they are generally included in the policy's territorial limits.

Understanding this distinction can help insurance professionals comprehend the specific geographies that might require separate coverage or specialized policies due to different risk considerations.