What Does Prohibition of Voluntary Payments Provision Mean?

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What does Prohibition of Voluntary Payments Provision mean? Read on to discover the definition & meaning of the term Prohibition of Voluntary Payments Provision - to help you better understand the language used in insurance policies.

Prohibition of Voluntary Payments Provision

Prohibition of Voluntary Payments Provision

A clause found in some liability policies barring coverage in the event that an insured makes a payment to a third party and then seeks reimbursement from the insurer. In the standard commercial general liability (CGL) coverage form, such a prohibition is included as one of the insured's "Duties in the Event of Occurrence, Claim or Suit."

We hope the you have a better understanding of the meaning of Prohibition of Voluntary Payments Provision.

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