{
  "id": "clause-special-termination",
  "type": "clause",
  "languages": {
    "en": {
      "id": "clause-special-termination",
      "lang": "en",
      "type": "clause",
      "title": "Special Termination Clause",
      "shortDefinition": "The special termination clause gives either or both parties the right to end the reinsurance treaty early upon defined trigger events such as a rating downgrade, change of control or solvency concerns.",
      "synonyms": [
        "Special cancellation clause"
      ],
      "linesOfBusiness": [
        "Reinsurance"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "Reinsurance",
        "Contract termination"
      ],
      "relations": {
        "relatedTerms": [
          "term-treaty-reinsurance",
          "term-reinsurer"
        ],
        "partOf": [],
        "appliesTo": [
          "term-treaty-reinsurance"
        ],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": {
        "kind": "termination",
        "origin": "reinsurance-market",
        "favours": "neutral",
        "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/special-termination-clause/",
      "alternateUrl": "https://hgh.ch/lexikon/de/wissen/klausel/special-termination-klausel/",
      "body": "## Purpose\n\nBeyond ordinary termination at the end of the treaty year, situations arise where a party legitimately does not want to wait until the regular expiry – for example if the reinsurer loses its rating or falls into a critical solvency position, or if the cedent undergoes a change of control. The special termination clause lists such triggers exhaustively and allows immediate or short-notice termination.\n\n## Effect and limits\n\nThe clause operates only prospectively (terminating the not-yet-earned portion of cover); losses already incurred generally remain covered unless a run-off arrangement is agreed. The listed triggers are usually objectively verifiable (rating level, regulatory action, merger) to avoid disputes over the legitimacy of termination.\n\n## Negotiation and practice\n\nKey negotiation points are the specific thresholds (for example a rating below a given level), the notice period following the trigger, and whether termination is accompanied by a portfolio transfer or a run-off of the risks in force."
    },
    "de": {
      "id": "clause-special-termination",
      "lang": "de",
      "type": "clause",
      "title": "Special-Termination-Klausel",
      "shortDefinition": "Die Special-Termination-Klausel räumt einer oder beiden Parteien das Recht ein, den Rückversicherungsvertrag bei bestimmten definierten Ereignissen – etwa Ratingverschlechterung, Kontrollwechsel oder Solvenzproblemen – vorzeitig zu beenden.",
      "synonyms": [
        "Sonderkündigungsklausel Rückversicherung"
      ],
      "linesOfBusiness": [
        "Rückversicherung"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "Rückversicherung",
        "Vertragsbeendigung"
      ],
      "relations": {
        "relatedTerms": [
          "term-treaty-reinsurance",
          "term-reinsurer"
        ],
        "partOf": [],
        "appliesTo": [
          "term-treaty-reinsurance"
        ],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": {
        "kind": "termination",
        "origin": "reinsurance-market",
        "favours": "neutral",
        "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/special-termination-klausel/",
      "alternateUrl": "https://hgh.ch/lexikon/en/knowledge/clause/special-termination-clause/",
      "body": "## Zweck\n\nNeben der ordentlichen Kündigung zum Jahresende gibt es Situationen, in denen eine Partei berechtigterweise nicht bis zum regulären Ablauf warten will – etwa wenn der Rückversicherer sein Rating verliert oder in eine kritische Solvenzlage gerät, oder wenn der Zedent die Kontrolle wechselt. Die Special-Termination-Klausel listet solche Auslöser abschliessend auf und erlaubt eine sofortige oder kurzfristige Beendigung.\n\n## Wirkung und Grenzen\n\nDie Klausel wirkt nur für die Zukunft (Kündigung des noch nicht abgewickelten Deckungsumfangs); bereits eingetretene Schäden bleiben grundsätzlich gedeckt, sofern kein Run-off vereinbart wird. Die aufgezählten Auslöser sind meist objektiv nachweisbar (Ratingstufe, Aufsichtsmassnahme, Fusion), um Streit über die Berechtigung der Kündigung zu vermeiden.\n\n## Verhandlung und Praxis\n\nZentrale Verhandlungspunkte sind die konkreten Schwellenwerte (etwa Rating unterhalb einer bestimmten Stufe), die Kündigungsfrist nach Eintritt des Auslösers sowie die Frage, ob bei Kündigung ein Portfolio-Transfer oder ein Run-off der laufenden Risiken vereinbart wird."
    }
  }
}