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 ?
As a result of the study of reinsurance companies and negotiations led by the management of KAFOLAT Insurance Company JSC and specialists of the company, obligatory reinsurance agreements were concluded with a number of leading reinsurance companies.
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.