Offset Clause

What is Offset Clause?

Offset Clause is An internal accounting provision / clause in a reinsurance contract under which the reinsured and reinsurer agree that debits and credits between the parties may be set off against each other. An example of the operation of this clause would be that premiums due to the reinsurer from the reinsured may be set off against loss payments due to the reinsured from the reinsurer.

 

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