A more thorough explanation:

Definition: Illicit means something that is not allowed or forbidden by law in a specific area. It is the opposite of licit, which means something that is lawful or permitted.

For example, selling drugs on the street is an illicit activity because it is against the law. Similarly, stealing is an illicit activity because it is not permitted by law.

The word illicit is often used in insurance policies, where the policyholder promises not to engage in any illicit trade. This means that they will not participate in any activities that are illegal or forbidden by law in the area where the policy is valid.

Overall, illicit refers to anything that is not allowed or permitted by law. It is important to follow the laws of your area to avoid engaging in any illicit activities.