Schedule of charges assessed by the Government of the Country on imported goods.
Tag: RAW
Customs Union
An agreement between two or more countries in which they arrange to abolish tariffs and other import restrictions on each other’s goods and establish a common tariff for the imports of all other countries.
Customs X-Bond Bill of Entry
When the importer desires to clear the warehoused goods he is required to file in customs an ex-bond bill of entry. After its processing and after payment of duty and warehousing charges the importer will be allowed to clear the goods.
Cut Off
The termination provision of a reinsurance contract stating that the reinsurer shall not be liable for loss as a result of occurrences taking place after the date of termination.
Cut off (Reinsurance)
A stipulation in a reinsurance contract, which states that the reinsurer will not be held liable for losses caused by events that occur after the termination date.
Cut Rate
This term generally applies to insurance companies who charge premium below a normal or average rate.
Cut through endorsement
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). Also called assumption endorsement or assumption of liability endorsement (ALE).
Cut-Off Clause
The termination provision of a reinsurance contract stipulating that the reinsurer shall not be liable for loss as a result of occurrences taking place after the date of termination. The remaining unearned premiums are returned to the ceding company.
Cut-off/run-off cancellation
When a continuous contract is terminated under the cancelling clause, the existing risks under the treaty may run-off or simply become cut-off. Run-off means that the reinsurer’s liability under policies current at the cancellation date continues until each policy expires. Cut-off means that the reinsurer will not be liable for losses occurring on or after termination. The insurer usually returns the unearned premium portfolio unless the treaty is written on an earned premium basis. See CLEAN CUT BASIS.
Cut-Through Clause
The clause provides that in the event of the reinsured’s insolvency any part of a loss covered by reinsurance be paid directly to the original insured by the reinsurer. This is an exception to the legality of privity of contract.
***
UK: A reinsurance clause providing that, in the event of insolvency of the cedant, the reinsurer will be liable to the insured for his share of the loss and not to the cedant’s liquidator.