What does Clearance mean? Read on to discover the definition & meaning of the term Clearance - to help you better understand the language used in insurance policies.
In most of the Canadian workers compensation provincial funds, an entity utilizing the services of another organization may be held responsible when that organization fails to pay the premium due the fund. The third party can request that the fund certify that the other organization is in good standing with the fund and thus be cleared of any responsibility for the payment of outstanding premium. This clearance normally takes the form of a certificate or letter issued by the fund.
We hope the you have a better understanding of the meaning of Clearance.