Definition of Liberalization clause:
In the United States, each state primarily regulates the sale of insurance policies. For example, government legislation sets the required coverage and limits, determines the liquidity requirements that insurance companies must meet to sell policies, and regulates insurers' bankruptcy.
A clause stating that policies will be changed to reflect changes made by subsidiary or rating agencies. No additional premium is required to enforce this provision.
The Liberalization Clause is an insurance policy clause that allows adjustments to existing insurance coverage in light of changes in relevant laws and regulations. Property insurance is the best place to look for release clauses.
How to use Liberalization clause in a sentence?
- Liberalization clauses benefit policyholders as well as insurance companies and allow coverage to increase, but generally do not reduce existing coverage.
- The Liberalization Clause aims to ensure that existing insurance policies remain in place despite changes to the rules and regulations.
- Some insurance policies are provided with liberalization clauses so that they can be changed after taking effect to reflect changes in regulations or legal provisions.
Meaning of Liberalization clause & Liberalization clause Definition