Definition of average clause
1 : a clause in an insurance policy that restricts the amount payable to a sum not to exceed the value of the property destroyed and that bears the same proportion to the loss as the face of the policy does to the value of the property insured — compare coinsurance
2 : a clause in a marine insurance policy that exempts the insurer from particular average and in respect of some things from all average
required by fashion, etiquette, or custom
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