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Prohibition Of Voluntary Payments Provision

Prohibition of Voluntary Payments Provision


A clause found in some liability policies barring coverage in the event that an insured makes a payment to a third party and then seeks reimbursement from the insurer. In the standard commercial general liability (CGL) coverage form, such a prohibition is included as one of the insured's "Duties in the Event of Occurrence, Claim or Suit."

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