Suspension Of Coverage
Definition of "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
Condition that results from injury or disease that is not job related. Workers compensation applies to employees disabled by on-the-job injuries or disease. In addition, five states require ...
Provision in a life insurance policy that death benefits will not be paid in the event an insured dies from war-related causes; or in lieu of a death benefit there is a return of premiums ...
Representative of a single insurer or fleet of insurers who is obliged to submit business only to that company, or at the very minimum, give that company first refusal rights on a sale. In ...
Entitlement to pension benefits without a reduction, even though an employee is no longer in the service of an employer at retirement. For example, under the ten year vesting rule, an ...
Same as term Arbitration Clause: rovision in a property insurance policy to the effect that in the event the insured and insurer cannot agree on the amount of a claim settlement, each ...
Designation earned by passing 10 national examinations on subjects including mathematics of life and health insurance, actuarial science, insurance, accounting, finance, and employee ...
A procedure in which the employer has absolute liability for the injuries incurred by the employee and the employee does not have the right to sue the employer for those injuries suffered. ...
Statistical projection of future deaths. ...
Assistance program for the financially needy. Medicaid, also referred to as Title XIX of the Social Security Act, was enacted in 1965 at the same time as medicare. It is a joint ...
Have a question or comment?
We're here to help.