Posts Tagged ‘CUT THROUGH CLAUSE’

The Reinsures and the Reassured hereby agree that if the Reassured shall at any time be placed in the hand of a receiver, assignee or trustee for the purpose of liquidation on account of insolvency, and if written notice be given to the Reinsures of said happening, their successors in the Reinsures in lieu of payment to the Reassured, their successors ... Full story

The cut-through clause is a provision in a reinsurance agreement which clarifies that, should the primary insurer becomes insolvent, the reinsurer is still liable for its stated share of the loss but that payment will be made directly to the insured and not to the insurer as is normally done. Many types of “cut-through-clause” wordings, please use as ... Full story