A contractual provision, generally required by statute or regulation as a prerequisite to receiving credit for reinsurance, under which the REINSURER agrees, in the event of the CEDENT's insolvency, to pay its reinsurance obligations under the contract whether or not the insurer has paid its obligations.
A provision in reinsurance agreements that provides for the continuance of payments of the obligations of the reinsurer as though no ceding company insolvency had occurred, with appropriate recognition of additional expenses of the reinsurer caused by the insolvency. This provision is required in most states.
A provision in reinsurance agreements that provides for the continuance of payments of the obligations for the reinsurer as though no insolvency had occurred, with appropriate recognition of additional expenses of the reinsurer caused by the insolvency. Required in New York and in certain other states.
In the United States, a clause contained in most reinsurance contracts and required by most states which specifies that, if the ceding company becomes insolvent, the reinsurer must pay the ceding company or its liquidator all reinsurance which comes payable, without reduction, even if the ceding company or its liquidator has failed to pay all or a portion of any claim. | Back
In reinsurance, a clause that holds the reinsurer liable for its share of loss assumed under the treaty, even though the primary insurer is insolvent.
A clause providing that the reinsurer shall be liable for his share of a loss even though the insurer has become insolvent.