Treaty Facility
Facility used to gain access to the reinsurance markets by the captive insurance companies for their large property exposures. The facility re-insures a relatively small percentage of its captive company members' property exposure and uses a retro-cession to transfer the remainder of the property exposure on a treaty reinsurance basis. The facility institutes all renewals of reinsurance for its captive company members at the same instance and arranges facultative reinsurance for those members that cannot meet the underwriting requirements of the facility.
Popular Insurance Terms
Act that requires the Department of Labor (DOL) to have a formal program to educate the public about the importance of saving for retirement. The DOL is also required to educate the public ...
Insurance coverage sold by a broker as contrasted with insurance coverage sold by an agent. ...
Amount of insurance remaining on a ceding company's books, net of the amount reinsured. ...
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Form of coverage in which an insurer automatically reinsures individual risks with its reinsurer. The insurer must transfer (cede) the risks to its reinsurer and its reinsurer must accept ...
Annual premium expressed on a proportionate basis such as monthly, quarterly, or semiannually. ...
Percentage return appropriated by the insurer for an immediate variable annuity when the insurer calculates the initial income payment to the annuitant. If the variable annuity's underlying ...
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