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Intermediary Clause

Intermediary Clause

Definition

This is a provision in reinsurance agreements that identifies the intermediary negotiating the agreement. Most intermediary agreements shift all credit risk to reinsurers by providing that the cedent's payments to the intermediary are deemed payments to the reinsurer, and the reinsurer's payments to the intermediary are not payments to the cedent until actually received by the cedent. This clause is mandatory in some states.

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