disability clause

disability clause

n
(Insurance) (in life assurance policies) a clause enabling a policyholder to cease payment of premiums without loss of coverage and often to receive a pension or indemnity if he or she becomes permanently disabled
References in periodicals archive ?
3, 1908, edition, the Western Underwriter listed Oregon Life as a company that offered life insurance with a "total disability clause," or a provision that paid benefits when an insured became totally disabled.
The court reasoned that a literal interpretation of the total disability clause would defeat the very purpose of the insurance because it "rarely happens that an insured is so completely disabled that he can transact no business duty whatever.
In contrast, disability clauses in buy-sell agreements are often written poorly or may be missing altogether.
Later, the provision spread to disability clauses through either legislation or contract drafting by the insurer.
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