Insurance bought by insurers. A reinsurer assumes part of the risk and part of the premium originally taken by the insurer, known as the primary company. Reinsurance effectively increases an insurer’s capital and therefore its Capacity to sell more coverage. The business is global and some of the largest reinsurers are based abroad. Reinsurers have their own … Read more
A pro rata reinsurance premium is charged for the reinstatement of the amount of reinsurance coverage that was reduced as the result of a reinsurance loss payment under a catastrophe cover.
When the amount of reinsurance coverage provided under a treaty is reduced by the payment of a reinsurance loss as the result of one catastrophe, the reinsurance cover is automatically reinstated usually by the payment of a reinstatement premium.
A provision in an Excess of Loss Reinsurance contract, particularly catastrophe and clash covers, that provides for reinstatement of a limit which is reduced by the occurrence of a loss or losses. The number of times that the limit can be reinstated varies, as does the cost of the reinstatement.
To help a disabled insured return to work in his or her own occupation, most disability insurance policies offer a rehabilitation benefit. This benefit will pay some of the expenses incurred when the insured enrolls in an approved rehabilitation program. The amount of the benefit is paid in addition to any other benefit the insured … Read more
A form of reinsurance under which the premium rates are subject to an experience refund as opposed to being fixed. See Experience Refund.
Literally means to draw a red line on a map around areas to receive special treatment. Refusal to issue insurance based solely on where applicants live is illegal in all states. Denial of insurance must be risk-based.
Reevaluation of the pricing classification of an inforce policy on an insured life, based on current evidence of insurability. The insurer may improve the classification or leave it unchanged. The Ceding Company should consider the effects of reconsideration on the reinsurer.
A mutual exchange of reinsurance between two or more companies.
Amounts owed to a business for goods or services provided.
