Cut Through Clause

CUT THROUGH CLAUSE #

It is further noted and agreed that all reinsurers of this policy shall pay in full subject to policy deductibles only, any and all losses covered by this policy or claims agreed to the insured in lieu of payment to the company, its successors in interest and or assigness. This clause shall operate unless and until cancelled in writing by the insured.

In the event that the company becomes insolvent or goes into liquidation and as a result defaults in the payment of any loss or losses payable under the terms of this policy, the reinsurers shall notwithstanding such defaults assume liability for such losses, payment or payments and make payments thereof to the Insured to the full extent of their interest without any deduction or deductions whatsoever.

The company hereby agrees that any such payments made by the reinsurer herein in accordance with this agreement shall consitute a discharge of reinsurers liability in respect of the particular claims and shall release them from any liability they would have had to the company in respect of such claims.

The insurers agree not to exercise the right of cancellation in event of non payment of reinsurance premium without first giving 30 days prior notice to insured named herein.