Asked by william beasley on May 11, 2024
Verified
What is an incontestability clause? What is an arbitration clause? What is a multiple insurance policies clause?
Incontestability Clause
A provision in an insurance policy that makes the policy non-contestable after it has been in force for a certain period, usually two years, except under certain conditions.
Arbitration Clause
A provision in a contract that requires disputes to be resolved through arbitration rather than court litigation.
Multiple Insurance Policies Clause
A provision in insurance that addresses coverage and claims handling when the insured has more than one policy covering the same risk.
- Grasp the various clauses found in insurance policies, such as the incontestability clause, the arbitration clause, and clauses regarding multiple insurance policies.
Verified Answer
An arbitration clause calls for the arbitration of disputes that may arise between the insurer and the insured concerning the settlement of claims.
A multiple-insurance-policies clause provides that if the insured has multiple insurance policies that cover the same property and the amount of coverage exceeds the loss, the loss will be shared proportionately by the insurance companies.
Learning Objectives
- Grasp the various clauses found in insurance policies, such as the incontestability clause, the arbitration clause, and clauses regarding multiple insurance policies.
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