Novation

{
  "id": "MLC-T-INS-002373",
  "term": "Novation",
  "field": "Insurance and risk management",
  "definition": "The substitution of a new contract for an old one, or the replacement of an original party to a contract with a new party, with the consent of all involved. In insurance, this often occurs in reinsurance where a new reinsurer takes on the obligations of an original reinsurer, releasing the original party from liability. This legal process requires a clear agreement among all three parties: the original obligor, the obligee, and the new obligor.",
  "url": "https://mlchart.com/terminology/insurance/novation/"
}