Strike-through clause

{
  "id": "MLC-T-INS-003745",
  "term": "Strike-through clause",
  "field": "Insurance and risk management",
  "definition": "A provision in a reinsurance treaty that obligates the reinsurer to pay the original policyholder directly in the event of the ceding insurer's insolvency. This clause bypasses the insolvent ceding company's estate, providing direct protection to the insured for the reinsured portion of their claim. It is a contractual agreement designed to maintain the continuity of coverage and payment for policyholders, particularly in long-tail lines of business.",
  "url": "https://mlchart.com/terminology/insurance/strike-through-clause/"
}