Intermediary Clause Law and Legal Definition
In reinsurance agreements, intermediary clause identifies the intermediary negotiating the agreement. Usually, all credit risks are shifted to reinsurers through intermediary clauses. An intermediary clause may provide that the cedant’s payments to the intermediary are deemed payments to the reinsurer; and the amount that the reinsurer pays to the intermediary are not deemed as payments to the cedant until actually received by the cedant.
