reinsurer
reinsurer. An insurer that assumes all or part of a risk underwritten by another insurer, usu. in exchange for a percentage of the original premium. [Cases: Insurance 3593.]
Search Results for: REINSURER
reinsurance treaty
reinsurance treaty. A contract of reinsurance (usu. long-term) covering different classes or lines of business of the reinsured (such as professional liability, property, etc.) and obligating the reinsurer in advance to accept the cession of covered risks. • Rather than receive individual notice of each specific claim covered, the treaty reinsurer will generally receive periodic
reinsurance treaty Read More »
follow the fortunes doctrine
follow-the-fortunes doctrine. Insurance. The principle that a reinsurer must reimburse the reinsured for its payment of settled claims as long as the reinsured’s payments were reasonable and in good faith. • This rule prevents a reinsurer from second-guessing a reinsured’s good-faith decision to pay a claim arguably not covered under the original insurance policy. —
follow the fortunes doctrine Read More »
follow the settlements doctrine
follow-the-settlements doctrine. Insurance. The principle that an indemnitor must accede to the actions of the indemnitee in adjusting and settling claims; esp., the principle that a reinsurer must follow the actions of the reinsured. [Cases: Insurance 3615.]
follow the settlements doctrine Read More »
facultative reinsurance
Reinsurance of an individual risk at the option (the “faculty”) of the reinsurer. [Cases: Insurance 3593.]
facultative reinsurance Read More »
reinsured
reinsured, n. An insurer that transfers all or part of a risk it underwrites to a reinsurer, usu. along with a percentage of the original premium. — Also termed cedent; cedant. [Cases: Insurance 3593.]
facultative certificate
facultative certificate (fak-[schwa]l-tay-tiv).Insurance. A contract of reinsurance separately negotiated to cover risks under a single insurance policy. • Facultative reinsurance allows the reinsurer the “faculty” of assessing and possibly rejecting a particular risk (esp. if underwriting information is inadequate). [Cases: Insurance 3605. C.J.S. Insurance § 1504.]
facultative certificate Read More »
excess reinsurance
Reinsurance in which a reinsurer assumes liability only for an amount of insurance that exceeds a specified sum. See excess insurance under INSURANCE.
excess reinsurance Read More »