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 in liability insurance for a ship owner in the event of collision with another ship. A running down clause, when added to basic hull marine insurance, protects against liability ...
Mortality table used to calculate the legal reserve and life insurance policy cash surrender values. ...
Liability incurred by a parent by reason of a tort committed by his or her minor child. ...
Agreement in which spouse X (the spouse who is mandated by the court to make alimony and/or child support payments to spouse Y) must put assets (the principal) in a trust, from which the ...
Decrease in value of property as the result of technological advancement and/or changing social mores. This factor is used to measure the amount of depreciation in determining the actual ...
Coverage under a homeowners insurance policy in the event that a credit card is fraudulently used or altered. Fraud includes theft and the unauthorized use of a credit card. ...
Life insurance in which the debit system is used to collect premiums on a monthly basis. ...
Same as term Commercial Health Insurance: coverage that provides two types of benefits, disability income (DI) and medical expenses. Sold by insurance companies whose business objective is ...
Approach that maintains injury or sickness begins when it is first detected by an obvious appearance. This argument is used in determining if liability insurance is afforded in a particular ...
Have a question or comment?
We're here to help.