MLchartDataset catalogue

Nonrescission provision

Term · Insurance and risk management · MLC-T-INS-002356

A clause in a directors and officers (D&O) liability insurance policy that prevents the insurer from rescinding the policy due to misrepresentations in the application, especially if those misrepresentations were made by only some of the insureds. This provision protects innocent directors and officers from losing coverage because of the fraudulent actions or omissions of others. It is a key protection for independent board members.

Table 1. Record
IdentifierMLC-T-INS-002356
FieldInsurance and risk management
SubjectManagement Liability
Record as JSON 
{
  "id": "MLC-T-INS-002356",
  "term": "Nonrescission provision",
  "field": "Insurance and risk management",
  "definition": "A clause in a directors and officers (D&O) liability insurance policy that prevents the insurer from rescinding the policy due to misrepresentations in the application, especially if those misrepresentations were made by only some of the insureds. This provision protects innocent directors and officers from losing coverage because of the fraudulent actions or omissions of others. It is a key protection for independent board members.",
  "subject": "Management Liability",
  "url": "https://mlchart.com/terminology/insurance/nonrescission-provision/"
}

Record 2,317 of 3,682 in Insurance and risk management terminology (MLC-0106). Request the full dataset.