A non-imputation clause is a provision in an insurance policy that protects the insured from having their claim denied due to knowledge that is legally attributed to them through a partner, shareholder, or member. This clause ensures that the insurance company cannot refuse to cover a claim based on what these individuals know, which might otherwise exclude the owner or lender from receiving coverage.
This term is primarily used in the context of insurance law. It is relevant in civil matters, particularly in cases involving property insurance and liability insurance. The non-imputation clause serves to safeguard the interests of owners and lenders by ensuring that their claims are not jeopardized by the knowledge of others associated with them. Users may find templates for non-imputation clauses in legal forms provided by US Legal Forms, which can help in drafting or reviewing insurance policies.
Here are a couple of examples of abatement:
(hypothetical example) A business owner has a partner who is aware of a potential liability issue. If the business faces a claim related to that issue, a non-imputation clause in their insurance policy would prevent the insurer from denying coverage based on the partner's knowledge.
Examples of state differences (not exhaustive):
| State | Non-Imputation Clause Variations |
|---|---|
| California | Non-imputation clauses are commonly included in commercial policies. |
| New York | Specific regulations may require clear disclosure of such clauses. |
| Texas | Non-imputation clauses are recognized but may have limitations based on policy language. |
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Imputation Clause | A clause that assigns knowledge to an individual based on their relationship. | Focuses on the attribution of knowledge rather than protection from liability. |
| Exclusion Clause | A provision that outlines circumstances under which coverage is denied. | Directly denies coverage, while a non-imputation clause protects against such denials. |
If you find that a non-imputation clause applies to your situation, consider reviewing your insurance policy to ensure it includes this provision. If it does not, you may want to consult with an insurance professional or an attorney to discuss adding it. Additionally, US Legal Forms offers templates that can assist you in drafting or modifying insurance agreements.
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It is a provision in an insurance policy that prevents claims from being denied based on knowledge attributed to partners or shareholders.