What does Related Claims Provisions mean? Read on to discover the definition & meaning of the term Related Claims Provisions - to help you better understand the language used in insurance policies.
Related Claims Provisions
Provisions within professional liability insurance policies stating that if more than one claim results from a single wrongful act, and if claims are made during more than one policy period, the insured is entitled to the limit applicable when the first claim was made rather than the sum of the limits that were applicable to the policy periods during which all claims were made. In recent years, this term has replaced the term "noncumulation of limits provision," which has essentially the same meaning in both common usage and within policy forms. The related claims provision is also sometimes referred to as the "interrelated claims provision," although this usage is less common.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
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