Reinsurance

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Related to reinsure: Quota Share Reinsurance, Facultative 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 ?
Currently, only 3 percent of owners use their captives to reinsure pooling agreements.
The DOL softened its stance when it granted the exemption for Columbia, which allowed Columbia to reinsure its long-term disability program, underwritten at the time by Employers Insurance Co.
Agents and brokers reinsure a portion of their book of business into a captive with the goal of capitalizing on good results.
It should be remembered that participating as a reinsurer exposes the producer to underwriting risk that would not exist without an insurance company, captive or PORC to reinsure the risk.
Under terms of the agreement, Prudential would be able to reinsure new policies written by yoei.
The rating applies to Republic Vanguard Reinsurance Company, Republic Insurance Company and its five affiliates that reinsure with the Republic Insurance Company.
The notes, which reinsure Gerling Global, are based on a "notional portfolio" that allows Gerling Global to update its exposure semiannually, the company said.
NASDAQ: AMIC) today announced that, effective January 1, 2005, Independence American Insurance Company will reinsure additional medical stop-loss business on certain programs issued by Standard Security Life Insurance Company of New York and Madison National Life Insurance Company, Inc.