A form of reinsurance under which the date of the claim report is deemed to be the date of the loss event. Claims reported during the term of the reinsurance agreement are therefore covered, regardless of when they occurred. A claims made agreement is said to “cut off the tail” on liability business by not covering … Read more
The present values of know claims as of the valuation date. From period to period, this amount will be increased by incurred claims and interest, and decreased by claim payments. See Case Reserve.
The portion of the Ceding Commission which is returned in the event of an early lapse.
Channel conflict can occur when a business attempts to sell the same product or service to its customer base through conflicting distribution channels. An example of channel conflict may be the traditional use of agents rather than a proposed channel of internet distribution. The existing channel – the agents – may feel threatened. The conflict … Read more
The amount of insurance risk transferred to the reinsurer by the Ceding Company. AlternativeThe individual risk being reinsured.
The cedant’s acquisition costs and overhead expenses, taxes, licenses and fees, plus a fee representing a share of expected profits – sometimes expressed as a percentage of the gross reinsurance premium.
When a company reinsures its liability with another, it “cedes” business.
Also known as outstanding loss reserve or pending reserve. These are estimates of outstanding, unpaid liabilities associated with specific reported claims. These reserves may include loss adjustment expenses as well. Case Reserves are established by a Ceding Company; however, if the reinsurer believes a Case Reserve is inadequate, it may establish an additional amount known as … Read more
A system of coordinating medical services to treat a patient, improve care, and reduce cost. A case manager coordinates health care delivery for patients.
A method by which gains or losses from the current period may be applied to results of a previous period (loss carry back) or a future period (loss carry forward).
