statutory omnibus clause

Definition of "statutory omnibus clause"
  1. A legal phrase referring to a mandatory rule requiring an auto insurance policy to offer coverage to any individual, given they are using the vehicle with the direct or inferred consent of the policyholder
How to use "statutory omnibus clause" in a sentence
  1. After the accident, John discovered the statutory omnibus clause in his insurance policy that covered the damages caused by his friend who was driving his car with his permission.
  2. The statutory omnibus clause ensures the policyholder's protection, even when another person is operating the vehicle with their consent.
  3. Under the statutory omnibus clause, the insurance company had to cover the accident costs after Sarah's brother wrecked her car even though she was not the driver at that time.

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