Illicit means unlawful or not permitted or forbidden by law in a specific jurisdiction. Illicit is more common in contemporary usage than its root, licit which means lawful or permitted. The word illicit is frequently used in insurance policies, where the assured warrants against illicit trade. Here, the definition of illicit is connoted to be unlawful by the laws of the jurisdiction where the policy is bound.
[Last updated in March of 2022 by the Wex Definitions Team]