An arrangement that permits a reinsurer to make a onetime payout that fulfills any and all obligations to another party after a given time period. Exercising the commutation clause permits the reinsurance company to discharge all responsibilities under a policy and limit ongoing exposure in situations such as long-term disability where losses are ongoing or recurring.
Related information about commutation clause:
- commutation clause - Insurance Glossary
commutation clause - Provision in a reinsurance agreement that allows for payment of cash by one party to release the other from all future obligations to pay ...
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Definition of commutation clause: An arrangement that permits a reinsurer to make a ... Exercising the commutation clause permits the reinsurance company to ...
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Commutation Clause - A clause in a reinsurance agreement, which provides for estimation, payment and complete discharge of all future obligations for ...
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uncomfortable with this, a clash product without the price benefit of the commutation clause may be more appropriate. In a commutation, the cedent receives a ...
- Hugh G. Earnhart - Mahoning Valley Civil War Round Table
The Peace Democrats claimed the commutation clause was undemocratic in that ... the commutation clause; the objection to such discrimination, on the basis of ...
- Glossary of Reinsurance Terms - Guy Carpenter
Commutation Clause. A clause in a reinsurance agreement which provides for estimation, payment, and complete discharge of all obligations, including future ...
- Substitutes, Civil War: Information from Answers.com
Immediately, the prices of substitutes rose far above the $300 to which the commutation clause had held them. For this reason, legal draft evasion became the ...
- Allotment and Homesteading - Native American Documents Project
A "commutation clause" added later allowed homesteaders to buy the land after living on it for six months and making some improvements. This clause seems to ...