Page 247 - Reinsurance Management IC85

Reinsurance Management

contract), notwithstanding that the actual
premium developed by applying the rate to the
subject premium could produce a lower figure.

Deposit Premium
The amount of premium (usually for an excess
of loss reinsurance contract), which the ceding
company pays to the reinsurer on a periodic basis
during the term of the contract. This amount is
generally determined as a percentage of the
estimated amount of premium that the contract
will produce based on the rate and estimated
subject premium. It is often the same as the
minimum premium but may be higher or lower.
The deposit premium will be adjusted to the higher
of the actual developed premium or the minimum
premium after the actual subject premium has
been determined.

d) Losses occurring and Risk attaching basis
Risk-attaching basis
A basis under which reinsurance is provided for

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