In marine insurance, an amount or percentage specified in the policy that must be reached before a claim is payable. Once the amount or percentage is attained, the claim is payable in full.
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Facility-of-Payment Clause
A contract provision found in Industrial Life policies, which permits the insurer to pay a portion of the proceeds of the policy to any relative or person who has possession of the policy, and who appears equitably entitled to such payment. This provision is designed to facilitate payment when some doubt may exist as to who the beneficiary is, and to save legal expenses in the settling of an estate.