Assumption Endorsement

We think of insurance companies as the last-resort safety net that we can always count on in times of emergencies. Unfortunately, an insurance company is just a business like anything else. There's a chance that it could go bust.
The assumption endorsement provides some protection against that. This provision can get added to an insurance contract, allowing the policy holder to receive payment directly from a reinsurer in case the insurance company is unable to pay.
See, insurance companies have insurance companies too. This business is known as reinsurance. Usually, if the insurance company needs to activate the reinsurance, it will collect from the reinsurer, and then pass the appropriate funds onto the client. However, in the case where the insurance company becomes insolvent, this process might get complicated.
The assumption endorsement allows the client to skip the middle man, collecting directly from the reinsurer. Which is good, because at that point, the original insurer is probably down on the corner, pretending to be blind and shaking a tin cup. Remember that whole "When you ASS U ME" thing...