Glossary
Choose a letter
R
- Rate
- Scale showing the various premium rates applied to risks belonging to a given category of insurance (as in motor rates, fire rates).
- Reinstatement
- A provision in an excess of loss reinsurance contract, particularly catastrophe and clash covers, that provides for reinstatement of a limit that had been reduced by the occurrence of a loss or losses. The number of times that the limit can be reinstated varies, as does the cost of the reinstatement.
- Reinstatement premiums
- Additional premiums charged under certain excess of loss reinsurance contracts to restore coverage amounts after a loss.
- Reinsurance
- Procedure whereby an insurer insures himself with an outside company (the reinsurer) for part or all of the risks covered by him, in return for payment of a premium.
- Reinsurance commission
- Percentage of premiums paid by the reinsurer to the insurer in quota-share or facultative treaties as a contribution to the acquisition and administrative costs relating to the business ceded.
- Reinsurance conditions
- All the clauses included in the reinsurance treaty. In economic terms, "reinsurance conditions" cover the rates established for the commission, the share in profits, the frequency of presentation of accounts and payment of interest on the deposits, or on the absence of deposits, which together determine the reinsurers' probable profit margin.
- Reinsurance portfolio
- The total reinsurance business (Treaty and Facultative) written and managed by a reinsurance company.
- Reinsurance premium
- Amount received by the reinsurer as a consideration for covering a risk.
