Franchise Clause
Definition of "Franchise clause"
Clause found in a marine insurance policy that states that the policy will not pay any claims less than a given amount but will pay claims in excess of that amount. The purpose of this clause is to eliminate the costs associated with processing small claims because their costs could easily exceed the actual amount of the# claim. This is a form of deductible insurance.
Popular Insurance Terms
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Attributes of a particular employee benefit plan. For example, a general characteristic of group life insurance is that the whole group is underwritten, not individual members. ...
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