Commutation Clause

Business, Legal & Accounting Glossary

Definition: Commutation Clause


Commutation Clause


Full Definition of Commutation Clause


An arrangement that permits a reinsurer to make a onetime payout that fulfills any and all obligations to another party after a given time period. Exercising the commutation clause permits the reinsurance company to discharge all responsibilities under a policy and limit ongoing exposure in situations such as long-term disability where losses are ongoing or recurring.


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https://payrollheaven.com/define/commutation-clause/ (accessed: March 29, 2024).
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, from PayrollHeaven.com website: https://payrollheaven.com/define/commutation-clause/

Definition Sources


Definitions for Commutation Clause are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.