Conditional payment clause

{
  "id": "MLC-T-INS-000893",
  "term": "Conditional payment clause",
  "field": "Insurance and risk management",
  "definition": "A contract provision in reinsurance agreements that makes the reinsurer's obligation to pay a claim contingent upon the primary insurer first paying that claim. This clause links the timing and actuality of the reinsurance payment directly to the cedent's own payment to the original policyholder. The enforceability of such clauses varies by jurisdiction and is often subject to judicial interpretation, particularly in cases of insurer insolvency.",
  "url": "https://mlchart.com/terminology/insurance/conditional-payment-clause/"
}