Facultative reinsurance means reinsurance of individual risks by offer and acceptance wherein the reinsurer retains the “faculty” to accept or reject each risk offered. Reinsurance of individual risks at the option of the reinsurer and the Ceding Company, whether under a treaty of reinsurance or by negotiation in respect of an individual risk. The reinsurer is … Read more
Bloodstock refers to racehorse insurance. Bloodstock insurance protects against the horses value. Bloodstock insurance effectively provides a life insurance policy for the animals in order to safe guard the investment made by the animal’s owner or owners. Cover can be extended to include fertility insurance for stallions, wind insurance should a yearling be bought and … Read more
The basic form of participating treaty whereby the reinsurer accepts a stated percentage of each and every risk within a defined category of business on a pro rata basis. Participation in each risk is fixed and certain.
A type of deed in which the person making it (the grantor) grants whatever interest he/she may have in the property described but doesn’t guarantee that interest. The grantor “quits” whatever “claim” he/she has. This type of deed is most often used to correct errors in deeds of record or to clear up questionable titles.
A form of Annuity purchased with pretax dollars as part of a retirement plan that benefits from special tax treatment, such as a 401(k) plan.
A generic term that, when used in reinsurance agreements, refers to damages awarded by a court against an insurer which are outside the provisions of the insurance policy, due to the insurer’s bad faith, fraud, or gross negligence in the handling of a claim. Examples are punitive damages and losses in excess of policy limits.
Pays a certain amount above the policy limit to replace a damaged home, generally 120 percent or 125 percent. Similar to a guaranteed Replacement cost policy, which has no percentage limits. Most homeowner policy limits track inflation in building costs. Guaranteed and extended Replacement cost policies are designed to protect the policyholder after a major disaster when … Read more
An Endorsement added to an insurance policy, or Clause within a policy, that provides additional coverage for risks other than those in a basic policy.
A method of rating, usually applied to Excess of Loss Reinsurance, under which the rate is determined based on an analysis of the exposure inherent in the business to be covered and not on the loss experience the business has demonstrated in the past. Both exposure rating and loss rating can be used by the reinsurance … Read more
A form of reinsurance under which the premium rates are subject to an experience refund as opposed to being fixed (non-refund).
