What does Claim Provision mean? Read on to discover the definition & meaning of the term Claim Provision - to help you better understand the language used in insurance policies.
A claim provision is a clause in an insurance contract that sets forth the procedure to be followed in the submission and administration of claims. In case of a reinsurance agreement, it states the terms and conditions under which the reinsurer's liability for claims will arise. It also specifies the authority of the ceding company and restrictions on such authority in handling claims.
We hope the you have a better understanding of the meaning of Claim Provision.