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Reinsurance Management

accident. It can be equal to sum insured or less
than sum insured. It is loss amount an underwriter
expects from an insured loss with reference to
actual sum insured.

v) Syndicate - Lloyd's syndicate are arranged on an
entirely different basis to proprietary insurance and
reinsurance companies. Each syndicate employs
underwriters who underwrite risks on syndicate name.
Each member of a syndicate have unlimited liability
and are supervised by Council of Lloyd's.

vi) Uberrimae fidei - Utmost good faith. Similar to
insurance contract where policy holder should
disclose all material facts with utmost good faith to
insurance company, a reinsured should disclose all
material facts regarding a risk to reinsurer. The
cedant must provide the reinsurer with detailed
information regarding the portfolio it is trying to
reinsure. This trust is extended to the underwriting
of risks, settlement of claims and determination of
retentions and cessions.

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