nonimputation provision
A clause found in most directors and officers (D&O) and professional liability
policies stating that intentional misstatements or omissions in the application
for coverage (e.g., failure to mention circumstances likely to produce a claim
in the future) will not be imputed to, and therefore will not bar coverage
for individuals who did not sign the application. In the absence of nonimputation
provisions, such persons would otherwise be denied protection under the policy
given these misstatements or omissions. In some instances, the nonimputation
provision appears in the application for coverage, rather than in the actual
policy form. Nonimputation provisions are also known as severability provisions.
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