GLOSSARIES
top
INTRODUCTION
top
Reinsurance
Risk transferred from one
insurer to another; a contract whereby the assuming insurer (reinsurer)
agrees to indemnify the ceding insurer (cedent) for all or part of the
claim liabilities under policies issued by the ceding insurer, which
pays the reinsurer a premium in return. By ceding some of its business,
an insurer may write more business within its reserve or surplus
requirements. Assuming insurers may cede risks to other reinsurers,
which is called retrocession. The two basic types of reinsurance are
facultative, involving the transfer of individual risks, and treaty,
involving the transfer of all risks in a class of business. The ceding
insurer usually remains liable for policy claims, and the reinsurer must
indemnify the cedent. In the less common assumption reinsurance, the
reinsurer becomes directly liable for claims settlement.
REINSURANCE SOURCES
top
RUN-OFF
COMPANIES AND RESOURCES
top
OTHER RESOURCES
top
|
