What is a liberalization clause?
Asked by: Winfield Gottlieb | Last update: December 6, 2025Score: 4.5/5 (20 votes)
What is the liberalization clause in an insurance policy quizlet?
The liberalization clause broadens coverage for the insured if the insurer, during the policy period or up to 45 days before policy inception adopts any policy revision that would broaden coverage without an additional premium. In those cases, the insured benefits automatically from the broadened coverage.
How does a liberalization clause affect a commercial property policy?
Including a liberalization clause allows insurers to expand coverage to comply with regulatory changes without issuing a new policy endorsement and notifying the policyholder. This clause enables the insurer to broaden the risks that a policy covers without requiring an additional premium from the policyholder.
What is the liberalization clause exclusion?
When governments pass legislation that mandates insurers to offer coverage for previously excluded events, the liberalization clause allows insurers to comply without incurring the additional cost of notifying policyholders or charging them for the new coverage.
Which of the following best describes the liberalization clause in a policy?
Final answer: The liberalization clause in a policy allows changes adopted by the insurer that broaden coverage to automatically apply to the policy at no additional premium.
What Is an Insurance Liberalization Clause? : Basic Insurance Advice
What best describes liberalization clause in a policy?
A liberalization clause is an insurance policy provision that provides additional coverage or benefits to the policyholder without requiring additional premium payments. It is designed to protect policyholders against changes in regulations, laws, or other factors that may reduce or limit their existing coverage.
What is an example of a liberalization clause?
If the State Board of Insurance adopts a revision which would broaden or extend the coverage under this policy without additional premium within 45 days prior to or during the policy period, the broadened or extended coverage will immediately apply to this policy.
What is the liberalization condition?
liberalization, the loosening of government controls. Although sometimes associated with the relaxation of laws relating to social matters such as abortion and divorce, liberalization is most often used as an economic term. In particular, it refers to reductions in restrictions on international trade and capital.
What is an example of an exclusion clause?
It's possible for you to include terms in your sales contract to protect yourself from liability if specified things go wrong, e.g. you could include a term saying you're not legally responsible if you're late in delivering the goods. This type of term is called an 'exclusion clause'.
What is the subrogation clause?
"Subrogation," or "subro" for short, refers to the right your insurance company holds under your policy — after they've paid a covered claim — to request reimbursement from the at-fault party. This reimbursement often comes from the at-fault party's insurance company.
What is the impact of Liberalisation policy?
Liberalisation plays a very important role in the economy as it opened up the economy to foreign investors. Export and import of products across different geographical locations help in foreign direct investment. Liberalisation increases the growth rates in a very short span of time.
Can you have an additional insured on a commercial property policy?
Adding an additional insured is a way of enabling a person or a group other than the policyholder to file a claim in case they are sued. An additional insured is typically added to a general liability insurance policy, commercial property or commercial auto policy.
What determines if a property is commercial or residential?
Commercial properties involve tenants that are businesses or multifamily apartments with five or more units. Residential properties are those where people live, such as single-family homes, duplexes, triplexes, or apartment buildings with four or fewer units.
What is the main goal of a policy of liberalization?
The objectives of liberalisation are: To increase foreign investment, competitiveness in industrial production, and technological advancements. To bring about modernisation and change the financial status of the economy.
What is the exclusion clause in insurance?
If a situation stated in an exclusion clause applies, a loss arising from that situation would not be covered under the insurance policy even if the loss results from the specified events or uncertainties which the insurance policy is supposed to protect against.
Which one of the following statements regarding the liberalization clause is true in a homeowners policy?
To directly address the student's question, the correct statement about the Liberalization clause is option 3) the Liberalization provision applies not only to changes made during the policy period, but also to any changes up to 60 days before it goes into effect.
What are the disadvantages of exclusion clauses?
Limitations of exclusion clauses
An exclusion clause will not be operable and able to be relied upon if the person attempting to rely on the clause had induced the other party to enter the contract by misrepresenting the effect of the clause.
What is the red hand rule in contract law?
This is known as the 'red hand rule' (the judge in the particular case felt that some terms were so burdensome that they should be “printed in red ink on the face of the document with a red hand pointing to it before the notice could be held to be sufficient“).
What is an exclusion clause in real estate?
For those who haven't encountered a “listing exclusion” yet, it's simply a request from a seller that if a certain person or persons buy the home after it goes on the market, your listing commission won't apply.
What is an example of liberalization?
Applications of economic liberalization include free trade, minimal taxes, and privatization. Markets are allowed to trade freely, importing and exporting goods and services with minimal government intervention. Governments would not protect certain industries or limit other industries by using tariffs or quotas.
Is liberalization good or bad?
Key Takeaways. Economic liberalization is generally thought of as a beneficial and desirable process for developing countries. The underlying goal of economic liberalization is to have unrestricted capital flowing into and out of the country, boosting economic growth and efficiency.
What is a synonym for the word liberalization?
Definitions of liberalization. noun. the act of making less strict. synonyms: liberalisation, relaxation. alleviation, easement, easing, relief.
What is liberation clause?
A liberty clause is a part of the United States Constitution that protects people from being unfairly or arbitrarily deprived of their life, freedom, or property by the government. This clause is also known as the Due Process Clause and is found in both the 5th and 14th Amendments of the Constitution.
What is liberalization in your own words?
Liberalization or liberalisation (British English) is a broad term that refers to the practice of making laws, systems, or opinions less severe, usually in the sense of eliminating certain government regulations or restrictions.
What is abandonment in insurance?
An abandonment clause in an insurance contract gives the insured party the right to forfeit damaged property in exchange for full payment. The issuing insurance company then take ownership of the damaged property.