Assessable Policy Law and Legal Definition
Assessable policy is an insurance policy in which an insurer can return back to the policyholder and can make them liable to pay the additional funds required to cover losses that fall beyond the reserves of the insurance company. It is also known as assessment insurance. The subscribers of assessable policy are generally mutual insurance companies and self-insurance plans.
In Updegraff v. Farmers Mut. Ins. Co., 782 S.W.2d 700 (Mo. Ct. App. 1989), the court observed that “no suit or action for any loss under an assessable policy shall be commenced until such loss becomes due in accordance with the policy, and in no event until 60 days have elapsed after proof of loss has been given by the company. No such suit or action shall be sustainable in any court unless all requirements of the policy have been complied with, or unless commenced within 12 months next after the loss”.