A clause in reinsurance agreement, which provides for estimation, payment and complete discharge of all future obligations for reinsurance losses incurred regardless of the continuing nature of certain losses such as untitled medical and lifetime benefits for workers compensation.
EXAMPLE:
• The insurer becomes liable to make periodic payments for a claim under any insurances reinsured hereunder, the parties may mutual agreement redeem any payments falling due to or from them by the payment of a lump sum.