MLchartDataset catalogue

Extracontractual obligations (ECO)

Term · Insurance and risk management · MLC-T-INS-001437

Liabilities incurred by an insurer that are not explicitly stated in the insurance policy contract but arise from the insurer's conduct in handling a claim. These obligations typically stem from bad faith actions, such as unreasonable delays in payment, improper claim denials, or unfair settlement practices. ECO awards can include punitive damages or consequential damages beyond the policy limits.

Table 1. Record
IdentifierMLC-T-INS-001437
FieldInsurance and risk management
AbbreviationECO
Record as JSON 
{
  "id": "MLC-T-INS-001437",
  "term": "Extracontractual obligations (ECO)",
  "field": "Insurance and risk management",
  "definition": "Liabilities incurred by an insurer that are not explicitly stated in the insurance policy contract but arise from the insurer's conduct in handling a claim. These obligations typically stem from bad faith actions, such as unreasonable delays in payment, improper claim denials, or unfair settlement practices. ECO awards can include punitive damages or consequential damages beyond the policy limits.",
  "abbreviation": "ECO",
  "url": "https://mlchart.com/terminology/insurance/extracontractual-obligations-eco/"
}

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