Definitions
What Is Reinsurance
The amount of stock sold by a corporation
What is subscribed capital ?
Represents that part of subscribed capital that has been paid in full by shareholders
What is paid-up capital ?
The mathematical premise that states the degree of uncertainty is reduced as the number of events increases
What is law of large numbers
A type of reinsurance where the company shares loss payments in the same proportion that it shares premium and policy amounts
What is proportional reinsurance
The amount of money an insurance company gains as a result of its insurance operations.
Underwriting profit
Funds set aside to pay for losses that have been incurred but not yet paid
Outstanding loss reserves ?
An insurers transferal or signing over part of an insurance risk to a reinsurer
What is a cede ?
Reinsurance in which the reinsurers portion of the loss depends on the size of the loss and the dollar level at which the reinsurance attaches
What is non proportional reinsurance
A London based insurance and reinsurance market
What is Lloyd's
Funds set aside by an insurance company for the purpose of meeting obligations as they fall due.
What are reserves ?
The portion of a risk that is kept by the insurer while the remainder is ceded to a reinsurer
What is Retain
An agreement between an insurance company and a reinsurer
What is a treaty?
An individual or company that has the authority to bind coverage for a specific line of business as outlined in a contract with an insurer
What is a coverholder ?
Compensation based upon the amount of production for example: I/A's , insurance agents
What are commissions ?
That which is ceded for example a reinsurance term
What is Cession ?
The measure of an insurers ability to issue contracts of insurance
What is capacity ?
A group of companies or underwriters organized to insure risks in the Lloyds insurance market
What is a syndicate ?
One who specializes in the mathematics of insurance, mortality rates and the like
What is an actuary?
Reinsurance of risks on individual case by case basis subject to acceptance or rejection by the insurer
What is facultative reinsurance