Mid-term, an insurer broadens the coverage of its standard form without charging more for it. Under the liberalization clause the change:
Explanation
The liberalization clause hands existing policyholders any broadening the insurer adopts for that form at no additional premium, automatically and without an endorsement. Requiring a written request or waiting for renewal would defeat the purpose, which is to avoid amending thousands of policies one at a time. It works in one direction only: narrowing coverage takes a proper endorsement or a new form.
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