A form of variable Annuity contract with no initial sales charge but if the contract is cancelled the holder pays deferred sales charges (usually from 5 to 7 percent the first Year, declining to zero after from 5 to 7 Years). The most common form of Annuity contract.
To accept risk from a Ceding Company.
A form of reinsurance in which the Ceding Company is obligated to cede, and the reinsurer is obligated to assume, risks which meet specific criteria based on the provisions of the reinsurance agreement and the Ceding Company‘s underwriting.
In nonproportional reinsurance, an amount over which a reinsurer agrees to start paying benefits.
A provision in many nonproportional reinsurance agreements that defines the benefits that will be paid.
A reinsurance agreement by which one company permanently transfers full responsibility for a block of policies to another company. This transfer is done in exchange for the assets underlying the liabilities and the right to receive future premiums; it is evidenced by an assumption certificate issued to the insured who, in some jurisdictions, has the … Read more
A statement of coverage by the reinsurer under which payment is guaranteed to a party not in privity with the reinsurance contract.
Document given to a policyowner to show that another insurer is taking on all the rights and obligations under the policy.
A procedure under which one insurance company takes over or assumes the direct policy liabilities of another insurer.
Property owned, in this case by an insurance company, including stocks, bonds, and real estate. Insurance accounting is concerned with solvency and the ability to pay claims. State insurance laws therefore require a conservative valuation of assets, prohibiting insurance companies from listing assets on their balance sheets whose values are uncertain, such as furniture, fixtures, debit balances, … Read more
