Which of the following is NOT an expected outcome of the "Liberalization" clause?

The notion of "Liberalization" clauses in insurance particularly relates to the practice of automatically providing policyholders with broader coverage without requiring an additional premium. Essentially, when an insurer introduces new or improved coverages that enhance the policy, the liberalization clause allows policyholders to benefit from these enhancements as long as they are within the original policy period. This means that if an insurance company expands its coverage options or enhances policy benefits, they do so at no extra financial burden to the policyholder.

The correct answer—additional premium required for new coverage—contrasts with the purpose of the liberalization clause. This clause is designed specifically to extend greater benefits without requiring additional payments, allowing policyholders to enjoy broader protection simply as a result of the updated contractual terms.

On the other hand, expanded coverage options, automatic inclusion of broader coverage, and enhanced benefits are all expected outcomes of such clauses. They embody the very essence of what liberalization aims to achieve in insurance contracts. Therefore, acknowledging that "additional premium required for new coverage" does not align with the principles of liberalization reinforces the understanding of how these clauses function to benefit policyholders.