What Does Assumption of Liability Endorsement Mean?

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What does Assumption of Liability Endorsement mean? Read on to discover the definition & meaning of the term Assumption of Liability Endorsement - to help you better understand the language used in insurance policies.

Assumption of Liability Endorsement

Assumption of Liability Endorsement

An endorsement added to an insurance policy to provide that, in the event of insolvency of the insurance company, the amount of any loss that would have been recovered from the reinsurer by the insurance company will be paid instead directly to the policyholder by the reinsurer. Also referred to as a cut through or assumption of risk endorsement.

We hope the you have a better understanding of the meaning of Assumption of Liability Endorsement.

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