Definition of "Franchise clause"

Monis Young real estate agent

Written by

Monis Youngelite badge icon

MONOM, LLC

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.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Feature of pension plans whereby an employee whose service has been interrupted can have that period credited toward retirement. ...

Individual retirement account established under the tax reform act of 1986, for a spouse who has unearned income. The maximum annual combined contribution into the worker's and spouse's IRA ...

Portion of the death benefit in a life insurance policy paid upon the insured being diagnosed as having a terminal illness that will result in death within a year. ...

Prospective insured who completes and signs a written form containing personal statements about himself/herself. ...

Coverage usually provided under the commercial general liability insurance (CGL); it can also be purchased separately. ...

Use of the threat of violence or actual violence in taking property from someone else's possession. This peril is covered on a personal basis through the purchase of a homeowners insurance ...

interconnection of computers that contain pages classified into groups called web sites that can be accessed over the internet. The only requirement for visiting a web site is to have ...

Process of the continual reinsurance of a ceding company's portfolio of insurance policies. All premiums that have been ceded become earned premiums. ...

Coverage in the event that, while practicing the profession of druggist, an act or omission is committed resulting in bodily injury, personal injury, and/or property damage to a customer. ...

Popular Insurance Questions