Page 327 - Reinsurance Management IC85

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Accept all or part of a reinsured" s insurance or reinsurance on a
risk or exposure through various forms of reinsurance..

Balance

The ratio between written premium under a treaty and the
maximum limit of liability to which the reinsurer is exposed. The
ratio will vary from treaty to treaty. If the ratio desired for a
specific treaty is achieved the treaty is referred to as "balanced."

Binder

A record of reinsurance arrangements pending the issuance of a
formal reinsurance contract which then replaces the binder.

Bordereaux

A detailed report of insurance premiums and losses policy-wise as
submitted by a reinsured to his reinsurer. Bordereaux reporting is
usually done in respect of pro rata reinsurance arrangements. In
contemporary practice bordereaux form of reporting is dispensed
with an substituted by summary reports

Broker

An intermediary who negotiates contracts of reinsurance on behalf
of the reinsured, while receiving commission for placement and
other services from the reinsurer.

Burning Cost

The ratio of actual past losses to their corresponding premium
(written or earned) for the same period. This ratio is used in
assessing a portfolio of business and in determining rate of
premium for renewal This can also be termed as experience rating.

Capacity

Conceptually it is a measure of an insurer's capability to accept a
level of risk as proposed. Another measure of this capability is in

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