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intermediary clause

A section in a reinsurance contract that specifies the intermediary who negotiated the agreement. The ceding company usually transfers all credit risk to the reinsurer through this clause. Generally, the provision stipulates that any payment to the intermediary by the ceding company is immediately considered received by the reinsurance company, while any payment by the reinsurer to the intermediary is not consider received until the ceding company has it in hand.

Related information about intermediary clause:
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  6. Glossary of Reinsurance Terms - Guy Carpenter
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