insolvency clause

  • The clause that holds the reinsurer liable for its pro rata share of any loss (or losses) assumed under the treaty, even though the primary company has become insolvent.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).