Bankruptcy condition

Term · Insurance and risk management · MLC-T-INS-000523

A policy provision stating that the bankruptcy or insolvency of the insured does not relieve the insurer of its obligations under the policy. This clause allows a claimant to proceed directly against the insurer to recover a judgment or settlement obtained against the bankrupt insured. The condition is a standard part of most liability insurance policies, including commercial general liability and auto liability forms.

Table 1. Record
Identifier	MLC-T-INS-000523
Field	Insurance and risk management
Subject	Commercial Liability

Record as JSON

{
  "id": "MLC-T-INS-000523",
  "term": "Bankruptcy condition",
  "field": "Insurance and risk management",
  "definition": "A policy provision stating that the bankruptcy or insolvency of the insured does not relieve the insurer of its obligations under the policy. This clause allows a claimant to proceed directly against the insurer to recover a judgment or settlement obtained against the bankrupt insured. The condition is a standard part of most liability insurance policies, including commercial general liability and auto liability forms.",
  "subject": "Commercial Liability",
  "url": "https://mlchart.com/terminology/insurance/bankruptcy-condition/"
}

Record 274 of 3,708 in Insurance and risk management terminology (MLC-0106). Request the full dataset.