[D025]

delay clause
1) In ocean marine insurance, a clause in the policy that excludes coverage for any loss experienced by the insured that results in damage to goods or loss of income/market that results from the vessels not arriving at its destination as scheduled (delayed).

2) In life insurance, a clause in the policy that allows the insurer to delay a loan on the cash surrender value of the policy, for a time period of normally six months, as clarified in the policy. The reasons and conditions allowing this delay are set forth in the contract; however, the purpose of this clause is to protect an insurer from excess demands by insureds for loans during periods of economic disasters or catastrophes.