Definitions

The portion of the reinsurance market that is placed through reinsurance intermediaries or brokers. This market is used much more frequently in the group reinsurance arena than in the individual reinsurance arena. See Intermediary.

A form providing premium or loss data with respect to identified specific risks which is furnished the reinsurer by the reinsured. A report, listing the identified specific risks reinsured, that the Ceding Company regularly provides to the reinsurer. This report typically includes the insured’s name, premium basis, premium and the amount of coverage.

Total amount of insurance on an insurer’s books at a particular point in time.

An evaluation of a bond’s financial strength, conducted by such major ratings agencies as Standard & Poor’s and Moody’s Investors Service.

A security that obligates the issuer to pay interest at specified intervals and to repay the principal amount of the loan at maturity. In insurance, a form of suretyship. Bonds of various types guarantee a payment or a reimbursement for financial losses resulting from dishonesty, failure to perform and other acts.

Coverage for more than one type of property at one location or one type of property at more than one location. Example: chain stores.

Also called Automatic Acceptance Limit or Automatic Binding Limit. The dollar amount of risk on a single or joint life to which a reinsurer is willing to obligate itself without making its own underwriting assessment.

An agreement between an Underwriter and a Coverholder under which the Coverholder may, in accordance with the terms of the agreement, accept Risks on behalf of Underwriting Members.

Temporary authorization of coverage issued prior to the actual insurance policy.

1 basis point equals 0.01% ( i.e. 100 bps = 1.00%) 0.01 percent of the yield of a mortgage, bond or note. The smallest measure used.