Prohibition of voluntary payments provision

Term · Insurance and risk management · MLC-T-INS-002717

A clause in an insurance policy that prevents an insured from making payments or assuming obligations to a third party without the insurer's prior consent. This provision protects the insurer from liability for payments made by the insured that might prejudice the insurer's defense or increase the cost of a claim. It typically applies to liability policies, requiring the insured to notify the insurer before admitting fault or settling a claim.

Table 1. Record
Identifier	MLC-T-INS-002717
Field	Insurance and risk management

Record as JSON

{
  "id": "MLC-T-INS-002717",
  "term": "Prohibition of voluntary payments provision",
  "field": "Insurance and risk management",
  "definition": "A clause in an insurance policy that prevents an insured from making payments or assuming obligations to a third party without the insurer's prior consent. This provision protects the insurer from liability for payments made by the insured that might prejudice the insurer's defense or increase the cost of a claim. It typically applies to liability policies, requiring the insured to notify the insurer before admitting fault or settling a claim.",
  "url": "https://mlchart.com/terminology/insurance/prohibition-of-voluntary-payments-provision/"
}

Record 2,741 of 3,708 in Insurance and risk management terminology (MLC-0106). Request the full dataset.