Ins and Outs of Cut-Throughs
James S. Gkonos and Fred M. Garsson, both members of the firm’s Insurance Practice Group, spoke on the issue of reinsurance cut-throughs (where a reinsurer contractually agrees to pay ceding company’s insured directly if the ceding company is insolvent) at a recent meeting for the Contract Wording Discussion Group (C.W.D.G.) in New York City. Their presentation, entitled “Ins and Outs of Cut-Throughs,” provided C.W.D.G. meeting attendees with a comprehensive overview of cut-throughs, including discussions on what a cut-through is, the benefits of a cut-through, as well as possible detriments to cut-throughs.