Cut-through clause definition
Cut-through clause. Insurers confirm that in the event of any claim arising under the hull insurances, the Reinsurers will in lieu of payment of the Insurers, its successors in interest and assigns, pay to the person named as sole loss payee under the original insurances that portion of any loss due for which the Reinsurers would otherwise be liable to pay the Insurers (subject to proof of loss), it being understood and agreed that any such payment by any Reinsurers will fully discharge and release such Reinsurer from any and all further liability in connection therewith and provide for payment to be made notwithstanding (i) any bankruptcy, insolvency, liquidation or dissolution of the Insurers and (ii) that the Insurers have made no payment under the original insurance policies.
Cut-through clause. The Reinsurers and the Insurers confirm and agree that in the event of any claim arising under the hull reinsurances where such claim is to be paid to the person named as sole loss payee under the primary insurances, the Reinsurers shall in lieu of payment to the Insurers, their successors in interest and assigns, pay to the person named as sole loss payee under the primary insurances that portion of any loss due for which the Reinsurers would otherwise be liable to pay the Insurers (subject to proof of loss), it being understood and agreed that any such payment by any Reinsurers shall (to the extent of such payment) fully discharge and release such Reinsurer from any and all further liability in connection therewith and provide for payment to be made notwithstanding (a) any bankruptcy, insolvency, liquidation or dissolution of the Insurers; and (b) that the Insurers have made no payment under the original insurance policies. Insurers confirm that if the Airframe and not the Engines suffers a Total Loss, Constructive Total Loss or Arranged Total Loss that Mortgagee will receive the entire Agreed Value regardless of any claim by any third party to the insurance proceeds on account of their engines being installed on the airframe at the time of the Total Loss, Constructive Total Loss or Arranged Total Loss.
Cut-through clause. Subject to the terms of Article 18.14, Insurers confirm that in the event of any claim arising under the hull insurances, the Reinsurers will in lieu of payment of the Insurers, its successors in interest and assigns, pay to the person named as sole loss payee under the original insurances that portion of any loss due for which the Reinsurers would otherwise be liable to pay the Insurers (subject to proof of loss), it being understood and agreed that any such payment by any Reinsurers will fully discharge and release such Reinsurer from any and all further liability in connection therewith and provide for payment to be made notwithstanding (i) any bankruptcy, insolvency, liquidation or dissolution of the Insurers and (ii) that the Insurers have made no payment under the original insurance policies.
More Definitions of Cut-through clause
Cut-through clause means an endorsement to a reinsurance agreement that requires that, in the event of the cedant’s insolvency, any loss covered under the reinsurance agreement be paid by the reinsurer directly to the insured (or a third-party beneficiary);