Divisible contract clause
Term · Insurance and risk management · MLC-T-INS-001206
A provision in an insurance policy stating that if one part of the contract is found to be invalid or unenforceable, the remaining valid parts of the contract will still be upheld. This clause prevents the entire policy from being voided due to a defect in a single provision. It is often included to maintain the enforceability of the policy's core coverage.
| Identifier | MLC-T-INS-001206 |
|---|---|
| Field | Insurance and risk management |
Record as JSON
{
"id": "MLC-T-INS-001206",
"term": "Divisible contract clause",
"field": "Insurance and risk management",
"definition": "A provision in an insurance policy stating that if one part of the contract is found to be invalid or unenforceable, the remaining valid parts of the contract will still be upheld. This clause prevents the entire policy from being voided due to a defect in a single provision. It is often included to maintain the enforceability of the policy's core coverage.",
"url": "https://mlchart.com/terminology/insurance/divisible-contract-clause/"
}
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