The term full premium if lost refers to a provision in hull insurance policies. This clause stipulates that if the insured vessel suffers a total loss and the insurance company pays out for that loss, the entire premium for the policy is considered fully earned. This means that the assured, or policyholder, is not entitled to any refund of the premium even if the loss occurs before the policy period ends.
This term is primarily used in the context of marine insurance, specifically hull insurance policies. It is relevant in legal practices involving insurance claims, maritime law, and risk management. Users can manage related forms and procedures by utilizing templates from US Legal Forms, which are drafted by qualified attorneys to ensure compliance with legal standards.
Here are a couple of examples of abatement:
For instance, if a boat valued at $100,000 is insured and is declared a total loss after a storm, the insurance company pays the full policy amount. Under the full premium if lost clause, the assured will not receive any refund of the premium paid for that policy term, regardless of when the loss occurred. (hypothetical example)
| Term | Definition | Key Differences |
|---|---|---|
| Partial Loss | Loss where the vessel is damaged but not completely destroyed. | Partial loss does not trigger the full premium if lost clause. |
| Return Premium | Refund of premium when a policy is canceled before the end of the term. | Full premium if lost clause prevents return premium in total loss cases. |
If you find yourself in a situation where the full premium if lost clause applies, it is essential to understand your rights and obligations. Review your insurance policy carefully and consider consulting a legal professional for tailored advice. You can also explore US Legal Forms for templates that can assist you in managing related insurance matters.
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If your vessel is partially damaged, the full premium if lost clause does not apply, and you may be eligible for a claim based on the extent of the damage.