insolvency clause

insolvency clause definition - business

insolvency clause

A clause in a reinsurance contract that states the reinsurance company will remain responsible for its share of claims even if the primary insurer is insolvent at the time the claims are made.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.