Page 134 - Reinsurance Management IC85

The Insurance Times

c) Ground up loss: The entire amount of an
insurance loss, including deductibles but net of
salvage and recoveries.

Ultimate net loss: The amount of the ceding
insurer’s loss which is eligible for recovery under
the terms of an excess of loss treaty.

d) Set-off clause and offset: A clause that allows
for amounts due between REINSURER and
REINSURED to be set off against each other
and the balance settled net. Can be extended to
cover balances due under all contracts between
the parties. Does not cover brokers’ balances.

e) Reciprocal treaties: An insurance company
accepts inward reinsurance by reciprocal
exchange of business with the other company.

Non-reciprocal treaties: An insurance company
accepts inward reinsurance but does not cede
business to other company.

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 132

ight@ The Insurance Times. 09883398055 / 0988338