Definitions

In a reinsurance transaction, the insurance company that is reinsured.

In reinsurance this term is applied to the nouns: insurer, insured, policy and insurance and means respectively: (1) the insurance company which initially originates the business, i.e., the Ceding Company; (2) the policyholder insured by the primary insurer; (3) the initial policy issued by the primary insurer to the primary insured; (4) the insurance covered under … Read more

The total premiums on all policies written by an insurer during a specified period of time, regardless of what portions have been earned. Net premiums written are premiums written after reinsurance transactions.

The sum of the face amounts, plus dividend additions, of life insurance policies outstanding at a given time.

The portion of the premium calculated to enable the insurer to pay losses and, in some cases, allocated claim expenses or the premium arrived at by dividing losses by exposure and in which no loading has been added for commission, taxes, and expenses.

A method of transferring unexpired liability from one year to another. Thus, if one reinsurer is to be relieved of its liability under a treaty at the end of the treaty year, it will be debited with an amount representing the Unearned Premium in the last account of the year. The new reinsurer who takes over the … Read more

When the terms of a policy provide that the final earned premium be determined at some time after the policy itself has been written, companies may require tentative or “deposit” premiums at the beginning which are readjusted when the actual earned charge has been later determined.

The price of an insurance policy, typically charged annually or semiannually. Written premium is premium registered on the books of an insurer or reinsurer at the time a policy is issued and paid for. Premium for a future exposure period is said to be unearned premium for an individual policy, written premium minus unearned premium equals earned premium. … Read more

The particular location of the property or a portion of it as designated in an insurance policy.

Network of medical providers which charge on a fee-for-service basis, but are paid on a negotiated, discounted fee schedule.