Coinsurance Plan Of Reinsurance
Definition of "Coinsurance plan of reinsurance"
Type of proportional reinsurance under which the ceding company (primary insurer) cedes a portion of the face amount of the life insurance policy it has underwritten to its reinsurer. The reinsurer, in the event of the death of the insured, is obligated to pay its pro rata share (thus the alternate name pro rata reinsurance) of the death benefit to the ceding company that in turn must pay the full death benefit to the insured's beneficiary. Under this plan, the reinsurer is also obligated to pay its pro rata share of all settlement options under the life insurance policy to include the cash surrender value. The reinsurer receives from the ceding company a pro rata share of the gross premiums paid on the policy to the ceding company. In return, the ceding company receives a ceding commission (to cover its expenses incurred in marketing, underwriting, and distributing the life insurance policy) from the reinsurer.
Popular Insurance Terms
coverage for contingent liability exposure. ...
Written contract between an insured and an insurance company stating the obligations and responsibilities of each party. ...
Proceeds from a life insurance policy paid on a monthly basis instead of in a lump sum. ...
Coverage for the inside of an insured premises of a business firm if it experiences a loss of money, securities, personal property, and damage or destruction of real or personal property ...
Fund that concentrates primarily on short-term government securities, certificates of deposit with maturities less than one year, and high-quality interest-bearing corporate debt. The fund ...
Interest earned but not yet paid for a period of time that has elapsed since the last interest payment. ...
Approach that reflects losses expected. It is a calculation of the pure cost of property or liability insurance protection without loadings for the insurance company's expenses, premium ...
Program of health care designed for the prevention and/or reduction of illnesses by providing such services as regular physical examinations. This care is in opposition to curative care, ...
Figure in a mortality table derived by dividing the number of people alive at the end of a given year by the number of people alive at the beginning of that same year. ...
Have a question or comment?
We're here to help.