Agreement between a life insurance company and a policyholder by which the company keeps the cash sum payable under an insurance policy and makes payments in agreement with the settlement option selected.
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An agreement by the Company to retain the lump-sum payable under an Insurance Policy and to make payments in accordance with the settlement option chosen. In Marine Insurance the cover granted under the “Sue and Labor Clause” is deemed to be supplementary to the contract of insurance, so that the insured may recover his expenses under the clause even though the insured may have paid a total loss under the main contract. Other cover, such as that given by the Collision clause, is also considered as a supplementary contract.