Suspension Provision

Published: | Updated: December 2, 2017

Definition - What does Suspension Provision mean?

A suspension provision is a clause in an insurance policy that indicates the circumstances or conditions that may constitute a suspension of coverage. If coverage is suspended, then the policyholder cannot receive benefits, even if they have paid the premiums for that time period.

It is more commonly known as suspension of coverage.

Insuranceopedia explains Suspension Provision

Sometimes, an insurer includes suspension provisions into a policy that prevent coverage under certain conditions because the insurer believes that the particular conditions are too high risk. For example, an automobile insurance company may suspend coverage if the person intends to deliberately use the car in dangerous circumstances, such as action sequences in movies or bumper car derbies. If the person decides to proceed anyway, they would not be financially protected in the event of damages.

How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

Share this:

Connect with us

Email Newsletter

Join thousands receiving the latest content and insights on the insurance industry.