Definition Of Yearly Renewable Term Plan Of Reinsurance In Insurance

Definition of "Yearly renewable term plan of reinsurance"

Rick Cranmer, Real Estate Agent Atlantic Shores Realty Expertise

Type of proportional reinsurance under which the ceding company (primary insurer) cedes to a re-insurer its net amount at risk for the amount above its retention limit on a life insurance policy. In the event the insured dies, the re-insurer is obligated to pay that part of the death benefit which is equivalent to the net amount at risk.