Definitions

A reinsurance arrangement by which two companies exchange risk and, in effect, reinsure each other.

In a reinsurance treaty, a provision that allows a Ceding Company to take back some or all of the reinsured business from a reinsurer.

Insurance that pays the dollar amount needed to replace damaged personal property or dwelling property without deducting for depreciation but limited by the maximum dollar amount shown on the declarations page of the policy.

The act or process of maintaining insurance in force by issuing a new policy to replace an expiring policy or the issuance of certificates or endorsements extending the term of an expiring policy.

This is a payment of an outstanding amount to or from a cedant or broker by cheque, bank transfer or wire transfer.

An insurer or reinsurer assuming the risk of another under contract.

A procedure for retroceding individual life insurance risks in excess of a reinsurer’s own retention to a group of retrocessionaires (up to their subscribed limits) in rotation, the order being determined by their positions as spokes on an imaginary wheel. The spokes need not be of the same length, i.e. limit, and a company may have more … Read more

The consideration paid by a Ceding Company to a reinsurer for the coverage provided by the reinsurer.

Also known as a reinsurance broker. An independent contractor who matches the needs of ceding companies with the products of reinsurers.

Pool that contains various reinsurance companies with each sharing reinsurance contracts on a pro rata basis as they are submitted to the Pool; Market that operates much like the New York Stock Exchange in that reinsurance contracts are bought and sold on a bid and asked basis. See also Layering, Pool, and Reinsurance Wheel.