What does Pre Set Allocation Provision mean? Read on to discover the definition & meaning of the term Pre Set Allocation Provision - to help you better understand the language used in insurance policies.
Pre Set Allocation Provision
A provision found in directors and officers (D&O) liability policy forms indicating the specific percentage of each claim that will be "allocated to" (i.e., paid by) the insured and the insurer, respectively. Pre-set allocation provisions apply only to section C, entity securities coverage, of D&O policies. Most often, these percentages are either 70/30 or 60/40 (insurer/insured).
We hope the you have a better understanding of the meaning of Pre Set Allocation Provision.