Insuring Clause

Definition - What does Insuring Clause mean?

An insuring clause is a provision in an insurance policy that stipulates the risk coverage assumed by the insurer. In other words, it details the risks for which the insurer is liable and defines the scope of the coverage.

Insuranceopedia explains Insuring Clause

An insuring clause is one of the critical components of an insurance contract and forms its foundation. It outlines the major guarantees of the insurer and states what is covered. It is in this clause that the insurer agrees to perform its roles, such as paying losses for the covered risks, providing agreed services, agreeing to provide defense for a lawsuit or any other agreement as per the insurance policy.

For example, in a life insurance policy, the insuring clause states the main purpose of paying out a specific amount in a death benefit after the insured passes to the named beneficiary. In this context, it would include the insurer’s name, the face value payable, and the insured’s name.

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