assumption endorsement


An addition to an insurance policy that protects the policyholder in the event that the insurance company becomes insolvent. Under this endorsement, any part of a claim covered by a reinsurer is paid directly to the policyholder. This provision "cuts through" the usual route of a payment, in which the payment goes through the insolvent insurance company before reaching the policyholder. Also called cut through endorsement.

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z