If policies or endorsement forms are broadened through legislation or rating authority rulings—and do not require premium increases—the "liberalization clause" automatically includes the broadened coverage in similar, existing policies.
A policy condition found in many standard policies which states that if the insurer adopts a revision that would broaden coverage without additional premium within some period of time prior to the policy period or during the policy period, the insured receives the benefit of such broadened coverage.
A feature of property policies that promises that any future change in the company’s form that would broaden coverage with no change in premium will automatically apply under the policy currently in force.
A clause in a policy providing that if, during the policy period, the insurance company adopts a change in the contract or there is a change in law that extends or broadens coverage, the insured will receive the benefit of this change in the same manner as if the endorsement had been made without paying an increased premium until renewal.
A clause in Property Insurance contracts which provides that if policy or endorsement forms are broadened by legislation or ruling from rating authorities and no additional premium is required, then all existing similar policies will be construed to include the broadened coverage.
A provision within an insurance policy that broadens the coverage if the insurance company offers a broader coverage form within the first 45 days of coverage.