Flashcard on commutation clauses

sam_rhodessam_rhodes
in Freihaut.Reins

"What is the purpose of a commutation clause in a reinsurance contract?"

The correct answer according to the flashcard is "To allow the reinsurer to reassume the risk at a predetermined date"

Freihaut says on page 22 of the source: "While this is a fair method for completing a commutation, it does require the
ceding company to reassume the risk of any changes in the unpaid claims after the predetermined
commutation date. This clearly returns some risk back to the ceding company, limiting the amount
of risk transferred in the original transaction."

I am reading that quote to mean that the commutation clause exists to allow the insurer/ceding company (NOT the reinsurer) to reassume the risk at a predetermined date. Am I misunderstanding what a commutation clause is for?

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