Cut through clause

{
  "id": "MLC-T-INS-001056",
  "term": "Cut through clause",
  "field": "Insurance and risk management",
  "definition": "A provision in a reinsurance contract that allows the original insured party to directly claim against the reinsurer in the event of the primary insurer's insolvency. This clause bypasses the need for the insured to wait for the insolvent insurer's liquidation process. It provides an additional layer of security for the policyholder.",
  "url": "https://mlchart.com/terminology/insurance/cut-through-clause/"
}