Page 334 - Reinsurance Management IC85

Reinsurance Management

Line

Either the limit of insurance to be written which a insurer has
set for itself on a class of risk (line limit), or the actual
incorporates by reference all of the terms (as well as amendments,
modifications, alteration, and waivers) of the original policy written
by the insurer that are not modified in the reinsurance contract,
i.e., are location of the property and the rate, among others.

Original Insurer

The insurer which writes a policy for a policyholder (which may
or may not create the need for reinsurance).

Original Policy

The policy written by the original insurer.

PML

The anticipated maximum property fire loss that could result,
given the normal functioning of protective features (firewalls,
sprinklers, a responsive fire department, etc.) as opposed to MFL
(Maximum Foreseeable Loss), which would be a similar valuation,
but on a worst case basis with respect to the functioning of the
protective features.

Pool

Any joint underwriting operation of insurance or reinsurance in
which the participants assume a predetermined and fixed interest
in all business written. Pools are often independently managed
by professionals with expertise in the classes of business
undertaken, and the members share in the premiums, losses,
expenses, and profits.

Portfolio

A defined body of a) insurance (policies) in force (known as a premium

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