Unconditional settlement clause

{
  "id": "MLC-T-INS-003399",
  "term": "Unconditional settlement clause",
  "field": "Insurance and risk management",
  "definition": "A provision in a reinsurance treaty that obligates the reinsurer to pay its share of a loss to the ceding insurer without regard to the ceding insurer's solvency or ability to pay the original policyholder. This clause protects the ceding insurer by guaranteeing the recovery of reinsurance proceeds. It is a standard feature in many proportional and non-proportional reinsurance agreements.",
  "url": "https://mlchart.com/terminology/insurance/unconditional-settlement-clause/"
}