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LSDefine

Simple English definitions for legal terms

contribution clause

Read a random definition: amortization

A quick definition of contribution clause:

Contribution Clause: This is a term that refers to a clause in an insurance policy that is also known as the coinsurance clause. It means that if you have more than one insurance policy covering the same risk, each policy will pay a portion of the claim. The contribution clause ensures that the policyholder does not receive more than the actual amount of the loss.

A more thorough explanation:

A contribution clause is a provision in an insurance policy that requires the policyholder to share in the cost of a claim if they are underinsured. This clause is also known as a coinsurance clause.

For example, let's say a homeowner has a property insurance policy with a 90% coinsurance clause. The policy has a limit of $200,000 for the home's replacement cost. If the homeowner only insures the home for $150,000, they are underinsured by 25%. If the home sustains $50,000 in damages, the homeowner would be responsible for paying 25% of the claim, or $12,500, out of pocket.

The contribution clause is designed to encourage policyholders to insure their property for its full value, so that they are not left with a large financial burden in the event of a claim.

contribution bar | contributione facienda

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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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