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I've never heard of a continuous duty cut out. Do you mean a diode cutout or a can style voltage regulator?
 
Continuous duty relay? The term in autoville is used to describe a device that designed to run continuous.
Ford uses a starter relay that will burn out if left energized for more than a few minutes. Now a relay that is nearly identical but is continuous duty are often used as battery isolators and run for hours.
By it's design a reverse current relay or cut out is continuous duty.
 
I am going to assume you are talking about the cut out on the generator.

A generator will run like a motor if voltage is applied to the unit. To keep this from happening a relay (cut out) is placed in series with the output. When the battery voltage is higher than the generator output the cut out is open so the generator will not run like a motor. When the generators output is higher than battery the cut out closes and the voltage from the generator is now used by the car.
 
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