The mutual exchange of reinsurances, often at the same level, from one party to the other, whose objective is to stabilize the overall results. With respect to the excess reinsurance of a reinsured company whose losses have been paid to the business, the distribution of recoveries receiving mountain assistance and losses is then distributed to reinsurers, starting with the reinsurer of the highest bracket and progress to the lowest level before it benefits. Each reinsurer therefore pays only the portion of the loss it would have suffered had the recovery been received prior to a reinsurance payment. Restoring the reinsurance limit of an excess contract to the full amount after payment of the loss by the reinsurer as a result of an event. In the case of reinsurance, an amount that the reinsured entity receives from reinsurance, the rescue of damaged property or the transfer to third parties. If the amount is payable (due but has not yet been paid to the company), the clause used, which is comparable to a claim, may be reached. Defined differently by the uncertainty of the loss, the probability of loss or the difference in actual results from the expected results. In addition, the word is used to identify the purpose of the insurance coverage, for example. B a building, an automobile, a human life or exposure to responsibility.
In reinsurance, each reinsured company generally has its own risk-setting rules. The recapture of risk puts an end to the payment of premiums and fees of the company transferred to the reinsurer. The reinsurer must cover all administrative and detention costs of the policies it has accepted and make a profit for the implementation of high-risk policies. Most reinsurers do not object to the inclusion of a returance provision in a reinsurance contract. However, a reinsurer will add conditions that limit how the company that withdraws can take back its risk. In a reinsurance contract, the insurer sells part of its debts to the reinsurer. The waiver of part of the insurer`s overall commitment frees up the insurance capacity. The reinsurer receives a portion of the premiums or a fee in return for taking over the liability. In most cases, the reinsurance contract remains in effect until the expiration of the underlying directive.
The insurer often sells higher risk policies above its retention level. Amount of insurance liability (in proportion to participation in the reinsurer) or loss (on a loss, for reinsurer`s compensation) taken over (or withheld) by an insurer on its own behalf. In pro-rata contracts, the reserve of liability clause will be a percentage of the policy limit. Beyond loss contracts, loss withholding 1) is equal to a dollar amount of loss (comparable to a deductible applied in the first insurance), 2) a percentage of each insurance liability category, 3) a loss amount greater than the actual insurance actually taken out, or 4) all three. See investment point and priority. The application of levies and credits resulting from an agreement or transaction to determine the amount owed to a party as part of the agreement or transaction. In the context of collection, levies and credits are applied, whether reciprocal claims, since charges and credits are limited to those resulting from the same transaction or contract and the purpose of recovery is to determine the amount owed or owed by the party in the context of this contract or transaction. This term is reduced, i.e. the reduction of the amount owed by one party to another party in connection with an agreement or transaction, in order to determine the amount owed to the first part by the second party in connection with another contract or transaction.