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Reinsurance Management
the ceded insurance liability, premiums, and losses of the ceding
insurer.
Quota-Share Reinsurance
A form of pro rata reinsurance (proportional) in which the reinsurer
assumes an agreed percentage of each insurance being reinsured
and shares all premiums and losses accordingly with the reinsured.
Reciprocity
The mutual exchanging of reinsurance, often in equal amounts,
from one party to another, the object of which is to stabilize
overall results.
Reinstatement
The restoration of the reinsurance limit of an excess property treaty
to its full amount after payment by the reinsurer of loss as a
result of an occurrence.
Reinsuring Clause
Language that describes the coverage agreed upon by the parties,
i.e., what is covered and when. The key components are three:
the indemnity aspect of the agreement, the type of business
covered, and the method of determining whether a loss falls within
the scope of the agreement.
Retention
The amount of insurance liability (in pro rata, for participation
with the reinsurer) or loss (in excess of loss, for indemnity of
excess loss by the reinsurer) which an insurer assumes (or retains)
for its own account.
Retrocession
The reinsuring of reinsurance. Retrocession is a separate contract
and document from the original reinsurance agreement between a
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