Offset clause

{
  "id": "MLC-T-INS-002403",
  "term": "Offset clause",
  "field": "Insurance and risk management",
  "definition": "A provision in an insurance policy or reinsurance treaty that allows one party to reduce its payment obligation to another party by the amount of a debt owed by the second party to the first. This clause prevents circular payments and simplifies financial settlements between insurers and reinsurers. It is particularly relevant in situations involving multiple claims or premium adjustments.",
  "url": "https://mlchart.com/terminology/insurance/offset-clause/"
}