UK: 1. Binds the reinsurer to follow the settlements’ of the reinsured provided that the settlements are within the terms of the original policy and the reinsurance. 2. Facultative reinsurance clause that passes control over all claims settlements to the reinsurer where all or nearly all of the risk is reinsured.
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REINSURANCE: A clause in a facultative reinsurance contract, where all or nearly all risk is reinsured, to give the reinsurer control over claim settlement.
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REFERENCE See: “Reinsurance, Full Reinsurance Clause.”