Page 338 - Reinsurance Management IC85

Reinsurance Management

Document setting out the risk particulars, terms and conditions
for which reinsurance protection is sought directly or through a
broker.

Solvency Margin

The excess of assets over liabilities as determined in compliance
with law and regulation to demonstrate an insurer's ability to carry
on business.

Stop-Loss Reinsurance

A form of excess of loss reinsurance which indemnifies the
reinsured against the amount by which the reinsured's losses
incurred (net after specific reinsurance recoveries) during a
specific period (usually 12 months) exceed either an agreed
amount or an agreed percentage of some other business measure,
such as aggregate net premiums over the same period or average
insurance in force for the same period. This form of reinsurance
is also known as stop-loss reinsurance, stop-loss-ratio reinsurance,
or excess of loss ratio reinsurance.

Surplus Reinsurance

A form of pro rata reinsurance indemnifying the ceding insurer
against loss to the extent of the surplus insurance liability ceded,
on a share basis similar to quota share.

Surplus Treaty

A term exclusive to pro rata reinsurance treaties which defines
the amount of each cession as the amount of gross (policy)
liability which exceeds, or is "surplus" to, an agreed net liability
retention, up to the limit of (reinsurance) liability.

Syndicate

An association of individuals or organizations to pursue certain

Sashi Publications - www.sashipublications.com 335

ight@ The Insurance Times. 09883398055 / 0988338