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Cooperation Clause: A rule in insurance policies that says the person who is insured must help the insurance company when they are investigating or defending a claim. This means that the insured person needs to provide information and do what the insurance company asks them to do.
Definition: A cooperation clause is a provision in an insurance policy that requires the insured to assist the insurer in investigating and defending a claim.
For example, if a policyholder files a claim for damages caused by a fire, the cooperation clause requires the policyholder to provide the insurer with all relevant information about the fire, including the cause and extent of the damage. The policyholder may also be required to allow the insurer to inspect the property and interview witnesses.
The cooperation clause is important because it helps the insurer to properly investigate and defend a claim. Without the cooperation of the policyholder, the insurer may not have enough information to determine the cause of the loss or to defend against a lawsuit.