Business Definition for: apportionment clause
apportionment clause
clause in a
property insurance
policy that requires the insurance coverage in that policy to be allocated in the proportion that it bears to the total insurance coverage in force from all policies covering that particular property.
See also
apportionment
Related Terms:
proportional division of rights, ownership, or expenses, as between buyer and seller in a real estate conveyance. In trusts and estates, it applies to the division of income and administration expenses between two or more accounts, for example, principal and interest income, or the division of estate taxes among heirs of an estate. Compare with allocation, which assigns income earned or expenses paid to a single account for accounting purposes.
Copyright © 2000, 1995, 1991, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.