Page 326 - Reinsurance Management IC85

Reinsurance Management

Administration Expense

Costs of running a business other than acquisition cost and settling
claims.

Adverse Selection

The submission by a reinsured to his reinsurer of those risks,
segments of risks or coverages that are less attractive for retention
by the reinsured.

Aggregate Excess

The reinsurer indemnifies the reinsured for an cumulative amount
of losses in excess of a specified aggregate amount.

Alternative Risk Financing

Use of the capacity available on the capital markets to cover
insurance risks, e.g. through the securitization of natural
catastrophe risks.

Anniversary

This is the date for renewal of a contract whether the contract
actually expires or is continuous. The date is usually twelve
months from the effective date of the contract. In provisions
dealing with run-off of contracts the anniversary date is that of
the underlying policies and not the reinsurance contract.

Arbitration Clause

A clause in reinsurance treaties whereby the parties agree to submit
any dispute or controversy to a mutually agreed arbitrators
including an umpire in lieu of those provided as per process of
law. Although the wording of the clause may vary it provides for
the decision of a majority of the arbitrators to be binding on the
parties to the reinsurance treaty.

Assume (also Accept)

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