Definitions

Also Self Rating A type of Experience Rating used in arriving at the reinsurance rate and premium for a specified period, based in whole or in part, on the loss experience of a prior period.

A form of reinsurance where the amount ceded is defined at the point the risk is transferred, not at the point of claim. The amount of risk may vary with time by formula.

Documents showing the insurance company that a loss occurred.

A provision found in some reinsurance agreements which provides for profit sharing. Parties agree to a formula for calculating profit, an allowance for the reinsurer’s expenses, and the cedant’s share of such profit after expenses.

A term used to designate a company whose business is confined solely to reinsurance and the peripheral services offered by a reinsurer to its customers as opposed to primary insurers who exchange reinsurance or operate reinsurance departments as adjuncts to their basic business of primary insurance. The majority of professional reinsurers provide complete reinsurance and … Read more

An amount paid to the Ceding Company by the reinsurer if the amount of reinsurance ceded in a given period exceeds a specified amount. Production bonuses are used to encourage a Ceding Company to place reinsurance with a certain reinsurer.

Securities that are not registered with the Securities and Exchange Commission and are sold directly to investors.

The term used in some foreign reinsurance markets meaning retention.

Interest rate that banks charge to their most Creditworthy customers. Banks set this rate according to their cost of funds and market forces.

Market for new issue securities where the proceeds go directly to the issuer.