Assumption Certificate

Assumption Certificate

A guarantee from a reinsurance company that it will pay for losses from an insured event if the original insurance company fails to do so. It provides the assumption certificate even though it does not bear a contractual relationship directly with policyholders. An assumption certificate is also called a cut-through endorsement.
References in periodicals archive ?
The Agreement provides for the issuance of an Old Republic Reinsurance Assumption Certificate to be issued automatically with all Fund policies issued on or after March 26, 2009.
Assumption certificates will be sent to the policyholders, and NGL will assume all assets and liabilities associated with these policies, including reserves.