What is Ri premium?
A reinsurance premium is an amount of money that an insurance company pays to a reinsurance company to receive a specific amount of reinsurance coverage over a specified period of time. Insurance companies purchase reinsurance to hedge their risks.
What is outward facultative reinsurance?
Facultative reinsurance is coverage purchased by a primary insurer to cover a single risk—or a block of risks—held in the primary insurer’s book of business. Facultative reinsurance is one of two types of reinsurance (the other type of reinsurance is called treaty reinsurance).
What is outward treaty?
Outward Reinsurance Agreements means any binder, contract, agreement, treaty, certificate, retrocession, understanding or other instrument of reinsurance ceded by the Seller, other than the Assumption Reinsurance Agreements or the Indemnity Reinsurance Agreements, in respect of any Reinsured Policy.
What does RI stand for in insurance?
Read More. NEXT DEFINITION. Reinsurance Risk. Reinsurance risk refers to the inability of the ceding company or the primary insurer to obtain insurance from a reinsurer at the right time and at an appropriate cost.
What is underwriting in reinsurance?
Description: Underwriting is a critical risk mitigation mechanism adopted in the insurance industry. The process helps in deciding the appropriate premium for an insured. When an insurance company enters into a reinsurance contract with another insurance company, then the same is called treaty reinsurance.
What is the difference between written premium and earned premium?
Written premiums stand in contrast to earned premiums, which is what an insurance company actually books as earnings. Written premiums are the principal source of an insurance company’s revenues and appear on the top line of the income statement.
What is inwards reinsurance?
Definition. Inwards Reinsurance (UK) represent the reinsurance business accepted by an insurer or reinsurer, as opposed to that ceded to another insurer. Also known as: Assumed Reinsurance (US)
What does facultative reinsurance mean in insurance?
Facultative reinsurance is reinsurance purchased by an insurer for a single risk or a defined package of risks. Usually a one-off transaction, it occurs whenever the reinsurance company insists on performing its own underwriting for some or all the policies to be reinsured.
What is facultative reinsurance in insurance?
This type of reinsurance is called facultative because the reinsurer has the power or “faculty” to accept or reject all or a part of any policy offered to it in contrast to treaty reinsurance, under which it must accept all applicable policies once the agreement is signed. …
What does assumed mean in insurance?
Assume — (1) To reinsure all or part of another insurer’s risk. (2) A risk management technique involving the retention of risk (e.g., self-insurance).
What does * RI mean?
RI. Rhode Island (US postal abbreviation) RI.
What do you mean by outward reinsurance?
The enterprise ceding (giving up) the risks is said to place outward reinsurance. Reinsurance ceded by an insurer or reinsurer, as opposed to inwards reinsurance which is reinsurance accepted. (Source: www.group.qbe.com)
What are outgoing reinsurance premiums?
Outgoing or outward reinsurance premiums, i.e. all amounts paid and payable by the undertaking concerned to get reinsurance cover, are only costs related to the provision of insurance coverage and are not to be deducted from the gross premiums written.
Can the other party terminate an outward reinsurance agreement?
Except as set forth on Schedule 4.24, no Outward Reinsurance Agreements contains any provision providing that the other party thereto may terminate such agreement by reason of the transactions contemplated by this Agreement.
What are administrative expenses for reinsurance?
Administrative expenses shall include the costs arising from premium collection, portfolio administration, handling of bonuses and rebates, and inward and outward reinsurance. Outward reinsurance premiums shall comprise all premiums paid or payable in respect of outward reinsurance contracts entered into by an insurance undertaking.