Cut through endorsement

{
  "id": "MLC-T-INS-001057",
  "term": "Cut through endorsement",
  "field": "Insurance and risk management",
  "definition": "An agreement added to a reinsurance contract that allows the original policyholder to directly claim against the reinsurer if the primary insurer becomes insolvent. This endorsement provides an additional layer of security for the insured, bypassing the financial instability of the initial insurer. It is particularly relevant in situations where the financial health of the primary insurer is a concern.",
  "url": "https://mlchart.com/terminology/insurance/cut-through-endorsement/"
}