Insurer insolvency exclusion

{
  "id": "MLC-T-INS-001876",
  "term": "Insurer insolvency exclusion",
  "field": "Insurance and risk management",
  "definition": "A provision in an insurance policy that states the policy will not cover losses arising from the financial inability of another insurer to pay a claim. This exclusion prevents a policyholder from seeking coverage from their own insurer if a third-party insurer, responsible for a loss, becomes insolvent. It shifts the risk of another insurer's failure away from the primary insurer.",
  "url": "https://mlchart.com/terminology/insurance/insurer-insolvency-exclusion/"
}