A form of reinsurance contract for accepting new business which does not terminate automatically but rather is intended to continue from Year to Year unless one of the parties delivers notice of intent to discontinue or termination is mutually agreed to in accordance with the termination provisions of the contract.
Inforce coverage whose provisions have been significantly modified without evidence of insurability. These modifications may include internal replacements, policy exchanges, term conversions, re-entries, and contractually permitted increases. Reinsurance on these policies stays with the original reinsurer unless otherwise agreed.
Liability of individuals, corporations, or partnerships for accidents caused by people other than employees for whose acts or omissions the corporations or partnerships are responsible.
An allowance payable to the Ceding Company in addition to the normal Ceding Commission allowance. It is a pre-determined percentage of the reinsurer’s net profits after a charge for the reinsurer’s overhead, derived from the subject treaty.
Coverage provided by the reinsurer for the Ceding Company’s liability under a conditional receipt. A reinsurance treaty should contain a provision specifically describing the parties’ intent regarding this coverage as it has been a frequent source of misunderstanding.
A receipt given to create an insurance contract on a temporary basis while the insurer underwrites the application. If the company rejects the application per its normal underwriting rules the temporary contract is null and void.
A reinsurance arrangement where the reinsurer underwrites all cessions. Conditional automatic reinsurance is generally used only if the Ceding Company does not have underwriters or MIB membership.
Pays for bodily injury or property damage caused by a completed project or job. Protects a business that sells a service against liability claims.
A measure used by some state insurance departments to track consumer complaints against insurance companies. Generally, it is written as the number of complaints upheld against an insurance company, as a percentage of premiums written. In some states, complaints from medical providers over the promptness of payments may also be included.
A facility established by a state to sell Workers Compensation in competition with private insurers.
