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The Hammer Clause. Called by some insurance companies âThe Cooperation Clause,â the hammer clause in a professional liability policy is something you should be aware of. The hammer clause is a provision included in many policies that gives the insurance company more control in a claim than you may be comfortable with. It is best described by example:
Standard Mortgage Clause Law & Legal Definition. Standard mortgage clause is a clause in an insurance policy that protects the interest of the lender to recover the proceeds even if the borrower is at fault. This type of clauses is mainly included in fire and casualty insurance.