Hold harmless provision

A provision of law that prevents a governmental entity, institution or other party from suffering additional expenses or loss of benefits as a result of a change in a statute or regulations. Without such a provision such an entity or institution would be responsible for expenses not previously anticipated due to an expanded caseload, more generous coverage provisions, or both. On the other hand, the use of hold harmless provisions often creates substantial confusion, heterogeneity and inequity in eligibility, coverage and responsibilities under a statute. In insurance, a provision offering the insured protection in disputes between the insurer and the provider of a covered service.


 


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