Definitions

An Endorsement added to an insurance policy covering the policyholder’s mortgaged property to provide that, in the event of the insolvency of the insurance company, the reinsurer shall pay directly to the mortgagee and/or the policyholder the amount of loss which would have been recovered from the reinsurer by the insurance company. The Endorsement may provide that … Read more

A single policy covering a group of individuals, usually employees of the same company or members of the same association and their dependents. Coverage occurs under a master policy issued to the employer or association.

A phrase referring to reinsurance losses subject to the contract under consideration before the application of the retention, but after reduction because of any other reinsurance which inures to the benefit of the coverage being considered. Also sometimes used to describe losses before reduction for inuring reinsurance.

Reserves before any credit for reinsurance (retro). Also known as Assumed Reserves.

The maximum limit a Ceding Company or reinsurer is willing to accept before taking Credit for reinsurance coverage. Such limits are usually expressed per insured, per line of business, etc. See Net Line

A period (usually 31 days) after the Premium due date, during which an overdue Premium may be paid without penalty. The Policy remains in force throughout this period.

A concept often applied to reinsurance agreements which emphasize the reliance upon the mutual integrity and good will of the parties to the agreement in order to solve disputes. See Honorable Undertaking.

Amount of investment a shareholder has in an entity. Total Equity – Debt.

Assets that would normally be paid over to a reinsurer but are withheld by the Ceding Company to permit statutory Credit for non-admitted reinsurance, to reduce the potential Credit risk, or to retain control over investments. Under certain circumstances, the reinsurer may withhold funds from the Ceding Company. See Modified Coinsurance.