Automatic Reinsurance

(redirected from Obligatory Reinsurance)

Automatic Reinsurance

An agreement between an insurer and a reinsurer in which the reinsurer takes over the risk for a certain class of policies from the insurer. See also: Reinsurance.
References in periodicals archive ?
Furthermore, both companies have a facultative obligatory reinsurance facility under which MSI agrees to reinsure all new exposures when MS Frontier's annual aggregate probable maximum retained loss amount, with a specified non-exceedance probability, exceeds a specific level of total adjusted stockholders' equity.
Furthermore, both companies have a facultative obligatory reinsurance facility under which MSI agrees to reinsure all new exposures when MS Frontier's annual aggregate probable maximum loss amount, with a specified non-exceedance probability, exceeds a specific level of total adjusted stockholders' equity.
The competitive industry environment is expected to persist, while overall industry growth remains flat, excluding the boost in net premiums written generated by the end to the obligatory reinsurance on CALI products.