Reinsurance

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Related to Facultative reinsurance: Quota Share Reinsurance

Reinsurance

The spreading of risk and division of client premiums among insurance companies allowing the sharing of the burden of a large risk.

Reinsurance

An insurance policy for insurers. In reinsurance, one insurer cedes a portion of its portfolio of policyholders to another insurer in exchange for paying a fee. There exists the possibility that too many policyholders will make a claim and a single insurer will be unable to pay the benefit without ruining itself. This is especially true for disaster insurance and other similar policies. Reinsurance reduces this risk. It is also called stop-loss insurance.

reinsurance

see INSURANCE COMPANY.
References in periodicals archive ?
When negotiating treaty and facultative reinsurance terms, get a portion of the ultimate expected reinsurance recoverables covered by a letter of credit.
Facultative reinsurance allows the insurer to accept or reject each risk separately, instead of having to accept a package of risks.
Transamerica Reinsurance is one of North America's largest suppliers of automatic and facultative reinsurance capacity, a leading reinsurance provider of product development and private label life solutions, and a consultant to financial services companies in the life and annuity markets.
Through its subsidiaries, it writes treaty and facultative reinsurance, insurance, and provides related services to insurance companies, other large businesses, government agencies, pools and other self-insurers.

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