A termination provision of a reinsurance contract that stipulates the reinsurer remains liable for loss as a result of occurrences taking place after the date of termination for reinsured policies-in-force at the date of termination until their expiration or for a specified time period.
Insurance companies that band together as self-insurers and form an organization that is chartered and licensed as an insurer in at least one state to handle liability insurance.
Management of the varied risks to which a business firm or association might be subject. It includes analyzing all exposures to gauge the likelihood of loss and choosing options to better manage or minimize loss. These options typically include reducing and eliminating the risk with safety measures, buying insurance, and self-insurance.
An amount identified in some reinsurance agreements as specifically to be retained by the reinsurer for assuming the risk under the policies reinsured; a share of the profits in excess of the Risk Charge is returned to the Ceding Company as an experience refund. Also known as profit and expense charge, risk and profit charge, or risk … Read more
The need for insurance companies to be capitalized according to the inherent riskiness of the type of insurance they sell. Higher-risk types of insurance, liability as opposed to property business, generally necessitate higher levels of capital.
A term used to denote the physical units of property at risk or the object of insurance protection and not Perils or Hazard. Reinsurance by tradition permits each insurance company to frame its own rules for defining units of Risks. The word is also defined as chance of loss or uncertainty of loss.
The chance of loss or the person or entity that is insured.
An attachment to an insurance policy that alters the policy’s coverage or terms.
A plan or method which permits adjustment of the final reinsurance Ceding Commission or premium on the basis of the actual loss experience under the subject reinsurance treaty – subject to minimum and maximum limits.
A reinsurer that contractually accepts from another reinsurer a portion of the Ceding Company’s underlying reinsurance risk. The transfer is known as a retrocession.
