{
  "id": "clause-cash-call-clause",
  "type": "clause",
  "languages": {
    "en": {
      "id": "clause-cash-call-clause",
      "lang": "en",
      "type": "clause",
      "title": "Cash Call Clause",
      "shortDefinition": "The cash call clause entitles the cedent to demand an immediate advance payment from the reinsurer for a large individual loss, instead of waiting for the regular periodic account.",
      "synonyms": [
        "Cash call provision"
      ],
      "linesOfBusiness": [
        "Reinsurance"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "Reinsurance",
        "Settlement"
      ],
      "relations": {
        "relatedTerms": [
          "term-cash-call",
          "term-treaty-reinsurance"
        ],
        "partOf": [],
        "appliesTo": [
          "term-treaty-reinsurance"
        ],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": {
        "kind": "claims",
        "origin": "reinsurance-market",
        "favours": "insured",
        "negotiability": "negotiable",
        "standardWordings": []
      },
      "legalBasis": [],
      "standards": [],
      "reviewStatus": "expert-reviewed",
      "reviewedBy": "Guido Hesse, Hesse Group Holding AG",
      "lastReviewed": "2026-09-04",
      "version": "0.1.0",
      "updated": "2026-09-03",
      "generated": {
        "by": "cursor-agent/claude-sonnet-5",
        "at": "2026-09-03T00:00:00.000Z"
      },
      "verified": [
        {
          "by": "human:ghesse",
          "at": "2026-09-04T00:00:00.000Z",
          "method": null
        }
      ],
      "staleAfter": null,
      "url": "https://hgh.ch/lexikon/en/knowledge/clause/cash-call-clause/",
      "alternateUrl": "https://hgh.ch/lexikon/de/wissen/klausel/cash-call-klausel/",
      "body": "## Purpose\n\nReinsurance payments are normally made as part of periodic account settlements (quarterly or annual). For a very large individual loss, this delay could put significant strain on the cedent's liquidity, particularly where it must itself pay the policyholder on short notice. The cash call clause allows the cedent, above a defined threshold, to demand an immediate individual payment outside the regular account.\n\n## Effect and limits\n\nThe reinsurer must pay within an agreed short deadline once the cedent has provided evidence of the loss amount and its due date. The clause is usually limited to losses above a minimum amount, so as not to unnecessarily increase administrative burden for smaller losses.\n\n## Negotiation and practice\n\nThe threshold, the payment deadline and the required evidence (loss notification, reserve estimate, proof of payment) are the main negotiation points. Where reinsurers provide security (trust accounts, letters of credit), the cash call clause is often combined with recourse to that security in the event of late payment."
    },
    "de": {
      "id": "clause-cash-call-clause",
      "lang": "de",
      "type": "clause",
      "title": "Cash-Call-Klausel",
      "shortDefinition": "Die Cash-Call-Klausel berechtigt den Zedenten, bei einem grossen Einzelschaden eine sofortige Vorauszahlung des Rückversicherers zu verlangen, statt bis zur regulären periodischen Abrechnung zu warten.",
      "synonyms": [
        "Sofortzahlungsklausel"
      ],
      "linesOfBusiness": [
        "Rückversicherung"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "Rückversicherung",
        "Zahlungsverkehr"
      ],
      "relations": {
        "relatedTerms": [
          "term-cash-call",
          "term-treaty-reinsurance"
        ],
        "partOf": [],
        "appliesTo": [
          "term-treaty-reinsurance"
        ],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": {
        "kind": "claims",
        "origin": "reinsurance-market",
        "favours": "insured",
        "negotiability": "negotiable",
        "standardWordings": []
      },
      "legalBasis": [],
      "standards": [],
      "reviewStatus": "expert-reviewed",
      "reviewedBy": "Guido Hesse, Hesse Group Holding AG",
      "lastReviewed": "2026-09-04",
      "version": "0.1.0",
      "updated": "2026-09-03",
      "generated": {
        "by": "cursor-agent/claude-sonnet-5",
        "at": "2026-09-03T00:00:00.000Z"
      },
      "verified": [
        {
          "by": "human:ghesse",
          "at": "2026-09-04T00:00:00.000Z",
          "method": null
        }
      ],
      "staleAfter": null,
      "url": "https://hgh.ch/lexikon/de/wissen/klausel/cash-call-klausel/",
      "alternateUrl": "https://hgh.ch/lexikon/en/knowledge/clause/cash-call-clause/",
      "body": "## Zweck\n\nRückversicherungszahlungen erfolgen normalerweise im Rahmen periodischer Kontoabrechnungen (vierteljährlich oder jährlich). Bei einem sehr grossen Einzelschaden könnte diese Verzögerung die Liquidität des Zedenten erheblich belasten, insbesondere wenn er selbst kurzfristig gegenüber dem Versicherungsnehmer zahlen muss. Die Cash-Call-Klausel erlaubt es dem Zedenten, ab einem definierten Schwellenwert eine sofortige Einzelzahlung ausserhalb der regulären Abrechnung zu verlangen.\n\n## Wirkung und Grenzen\n\nDer Rückversicherer muss innerhalb einer vereinbarten kurzen Frist zahlen, sobald der Zedent Nachweise für Schadenhöhe und Fälligkeit vorlegt. Die Klausel ist meist auf Schäden oberhalb eines Mindestbetrags beschränkt, um den administrativen Aufwand für kleinere Schäden nicht unnötig zu erhöhen.\n\n## Verhandlung und Praxis\n\nSchwellenwert, Zahlungsfrist und erforderliche Nachweise (Schadenmeldung, Reserveschätzung, Zahlungsbeleg) sind die wesentlichen Verhandlungspunkte. Bei Rückversicherern mit Sicherheiten (Trust, Letter of Credit) ist die Cash-Call-Klausel oft mit einem Rückgriff auf diese Sicherheit bei verspäteter Zahlung kombiniert."
    }
  }
}