Provision in some policies that limits the amount of benefits in which the insurance company will participate when the total amount of disability benefits from all insurers is beyond the insured’s usual earnings. Also known as participation limit .
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In disability insurance, a provision that reduced payment to the proportion of policy benefits that the insured’s earnings at the time of disability (or average earnings for two years prior to disability) bear to total disability benefits under all policies, also called the average earnings clause.