Common use of Risk Transfer Clause in Contracts

Risk Transfer. Where we have agreed with certain insurers to receive money as their agent, money received from you (or the insurer) will become (or remain) the property of the insurer whilst we hold it. Therefore if you pay a premium to us it will be treated as having been received by the insurer which means that you cannot be asked to pay again if we do not pay the insurer. Similarly, the insurer will bear the risk if claims money or return bears the risk of such losses the industry often refers to this as Risk