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  2. Insurance Terms Starting With L

Liberalization Clause

What is a Liberalization Clause?

A liberalization clause is an insurance policy provision that provides additional coverage or benefits to the policyholder without requiring additional premium payments. It is designed to protect policyholders against changes in regulations, laws, or other factors that may reduce or limit their existing coverage. The clause typically applies when an insurer broadens coverage for a particular type of policy. Liberalization clauses are commonly found in property insurance and gaining popularity in liability insurance.