Definitions

The termination provision of a reinsurance contract stipulating that the reinsurer shall not be liable for loss as a result of occurrences taking place after the date of termination

The number produced by an analysis of an individual’s Credit history. The use of Credit information affects all consumers in many ways, from getting a job, finding a place to live, securing a loan, getting a telephone, and buying insurance. Credit history is routinely reviewed by insurers before issuing a commercial policy because businesses in … Read more

A statutory accounting procedure permitting a Ceding Company to treat amounts due from reinsurers as assets or reductions from liability based on the status of the reinsurer.

A technique to lower the interest payments on a bond by raising the issue’s Credit rating, often through insurance in the form of a financial guarantee or with standby letters of Credit issued by a bank.

A contract that enables a user, such as a bank, to better manage its Credit risk. A way of transferring Credit risk to another party.

The promise to pay in the future in order to buy or borrow in the present. The right to defer payment of debt.

The terms, conditions, definitions and exclusions as stated in each attachment for each coverage the insured(s) selects and listed in the declarations, including endorsements. Each coverage unit is a separate and distinct coverage. Coverage units include Lawyers Professional Liability (LPL), Title Insurance Agency (TIA), Employment Practices Liability (EPL), Employee Dishonesty (EDC), Nonprofit Directors & Officers … Read more

Confirmation to the Ceding Company of terms and conditions and percentage placed with each reinsurer. See Slip.

An amount over the expected claim amount that losses must exceed before losses are payable by the reinsurer. Typically used with Stop Loss reinsurance. See Stop Loss.

Where there is more than one reinsurer sharing a line of insurance on a risk in excess of a specified retention, each such reinsurer shall contribute towards any excess loss in proportion to his original participation in such risk. ExampleRetention $100,000, Reinsurer A accepts one-half contributing share part of $1,000,000 in excess of said $100,000. Reinsurer … Read more