The reinsuring underwriters and companies hereon (hereinafter called the reinsurers) and the reinsured company (hereinafter called the cedant) hereby agree that in lieu of payment of premiums by cedant to the reinsurers and of payment of claims by reinsurers to the cedant, the reinsurers hereon shall receive their 100% proportion of all premiums direct from the original insured and shall pay their 100% proportion of any loss direct to the original insured subject always to the terms of the policy issued by the cedant, under which the reinsurers would have been liable to pay to the cedant.
It is hereby understood and agreed that any such claim payment by the reinsurers made directly to the original insured shall fully discharge and release reinsurers hereon from any and all further liability hereunder.