Suspension Of Coverage
Interruption of insurance provided for in most property insurance policies under circumstances where a substantial increase in hazard has arisen with the knowledge or control of the insured. The policy's work and materials clause gives the insured the right to use materials and processes needed in his or her business without facing suspension from increased hazard. But major changes in the characteristics of the risk will trigger suspension of coverage. For example, a building used to warehouse dry goods when fire insurance first is written on it may be converted by the insured to store paint. The substantial increase in hazard results in suspension of coverage. Vacancy for more than 60 days and riot or explosion also result in suspension. Coverage is reinstated automatically for the remainder of the policy term when the condition that triggered suspension is corrected.
Popular Insurance Terms
To accept by a reinsurer, part or all of a risk transferred to it by a primary insurer or another reinsurer. ...
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Combination of coverages from property, liability, health, and life insurance into a single insurance policy from one insurance company. ...
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Feature of pension plans whereby an employee whose service has been interrupted can have that period credited toward retirement. ...
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Base upon which a mortality table is built by beginning with a randomly selected group of people who are alive at the earliest age for which statistics are available on the number of people ...
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