Cut off point in the Assurance Agreement

Aug 6th, 2022
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In a nutshell, a plea cut-off policy establishes a drop dead date after which the court will not accept a negotiated plea agreement. (Constitutionally, the court is obligated to accept a plea to the full indictment at any time before.)
A cut-through clause is a reinsurance contract provision that allows a party, other than the ceding company and reinsurance company, to have rights under the agreement. Cut-through clauses are often triggered by specific events, such as when a ceding company becomes insolvent.
The Clean Cut accounting system is best suited for Classes of Business which are short tail i.e. classes of business in which claims can be settled faster such Fire and Accident Policies.
So what is run-off? Run-off portfolio refers to insurance policies or reinsurance contracts terminated but for which the Insurer or the Reinsurer remains liable for until the final settlement and payment of the claims.
There are two main methods of reinsurance accounting: 1. Clean-Cut Method. The clean-cut accounting system works on a portfolio transfer basis. The portfolio premium withdrawal takes care of liabilities for the unexpired risks at the end of the treaty year.
Clean-Cut Method The portfolio premium withdrawal takes care of liabilities for the unexpired risks at the end of the treaty year. Similarly, there may be claims outstanding at the end of the treaty year, the liability for which is also withdrawn from the treaty outgoing reinsurers.
An insurance cutoff is a feature in a reinsurance contract that addresses how long the reinsurer must pay claims after the contract has been terminated. Also called a cutoff cancellation, the insurance cutoff lays out how long the reinsurer is liable to the insured.

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