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The Hammer Clause. Called by some insurance companies âThe Cooperation Clause,â the hammer clause in a professional liability policy is something you should be aware of. The hammer clause is a provision included in many policies that gives the insurance company more control in a claim than you may be comfortable with. It is best described by example:
Explaining the Incontestability Clause. How do insurance agents and companies handle untruths on behalf of their clients? The incontestability clause was originally designed to manage situations wherein an applicant fails to mention something that is relevant to a life insurance policy and how it is approved and issued.