What does Access To Records Clause mean? Read on to discover the definition & meaning of the term Access To Records Clause - to help you better understand the language used in insurance policies.
Access To Records Clause
Also referred to generically as an "inspection" or "audit" clause, is one of the most significant contract rights that a reinsurer has under a reinsurance agreement. The purpose of this clause is to grant the reinsurer the right to inspect the cedent's books and records applicable to the reinsured business. This is one of the few methods reinsurers have to evaluate the business being ceded to them under their reinsurance agreement and to ascertain whether the cedent is following the terms and conditions of the agreement, in particular the accuracy of policy and claim cessions and premium calculations.
We hope the you have a better understanding of the meaning of Access To Records Clause.