A provision in reinsurance agreements which identifies the intermediary negotiating the agreement. Most intermediary Clauses shift all Credit risk to reinsurers by providing that: the cedant’s payments to the intermediary are deemed payments to the reinsurer; and the reinsurer’s payments to the intermediary are not payments to the cedant until actually received by the cedant. This Clause is mandatory in some states
Coverage where the distinction between job-related and non-occupational illnesses or injuries is eliminated and Workers Compensation and general health coverage are combined. Legal obstacles exist, however, because the two coverages are administered separately. Previously called twenty-four hour coverage.
Insurance written in an amount approximating the value of the insured property.
Insurance scores are confidential rankings based on Credit information. This includes whether the consumer has made timely payments on loans, the number of open Credit card accounts and whether a bankruptcy filing has been made. An insurance score is a measure of how well consumers manage their financial affairs, not of their financial assets. It … Read more
A system to make large financial losses more affordable by Pooling the risks of many individuals and business entities and transferring them to an insurance company or other large group in return for a premium.
Risks for which it is relatively easy to get insurance and that meet certain criteria. These include being definable, accidental in nature, and part of a group of similar risks large enough to make losses predictable. The insurance company also must be able to come up with a reasonable price for the insurance.
A provision in reinsurance agreements that provides for the continuance of payments of the obligations of the reinsurer as though no Ceding Company insolvency had occurred, with appropriate recognition of additional expenses of the reinsurer caused by the insolvency. This provision is required in most states.
Insurer’s inability to pay debts. Insurance insolvency standards and the regulatory actions taken vary from state to state. When regulators deem an insurance company is in danger of becoming insolvent, they can take one of three actions: place a company in conservatorship or rehabilitation if the company can be saved or liquidation if salvage is … Read more
Certain goods are, by their very nature susceptible to damage and it would be unreasonable to expect insurers to pay for such damage. Examples of inherent vice are would be deterioration of imperfectly cured skins, spontaneous fermentation or combustion of improperly dried grain.
A loading to provide for increased medical costs and loss payments in the future due to inflation.
