Refers to the insured or reinsured paying premiums into an account at a commercial bank that will be used to pay for future or past losses. Portions of the premiums not required to pay for these losses are refunded to the policyowner or ceding company.
A procedure in which a primary insurer acts as the insurer of record by issuing a policy, but then passes the entire risk to a reinsurer in exchange for a commission. Often, the fronting insurer is licensed to do business in a state or country where the risk is located, but the reinsurer is not. … Read more
Number of times a loss occurs. One of the criteria used in calculating premium rates.
A period of up to one month during which the purchaser of an Annuity can cancel the contract with no penalty. Rules vary by state.
Intentional lying or concealment by policyholders to obtain payment of an insurance claim that would otherwise not be paid, or lying or misrepresentation by the insurance company managers, employees, agents, and brokers for financial gain.
The Clause stipulating that once a risk has been ceded by the reinsured, the reinsurer is bound by the same fate thereon as experienced by the Ceding Company.
A reinsurer which accepts the business ceded based on the terms of a contract primarily negotiated by another reinsurer, known as the lead reinsurer. See Lead Reinsurer
In reinsurance, a percentage rate applied to a Ceding Company’s premium writings for the classes of business reinsured to determine the reinsurance premiums to be paid the reinsurer.
An Annuity that guarantees a specific rate of return. In the case of a deferred Annuity, a minimum rate of interest is guaranteed during the savings phase. During the payment phase, a fixed amount of income, paid on a regular schedule, is guaranteed.
Coverage for the policyholder’s own property or person. In no-fault auto insurance it pays for the cost of injuries. In no-fault states with the broadest coverage, the personal injury protection (PIP) part of the policy pays for medical care, lost income, funeral expenses and, where the injured person is not able to provide services such as … Read more
