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| GLOSSARY |
| BORDEREAUX List of risks reinsured. May relate to cessions of premium or claims. CASH CALL LIMIT Usually found in a proportional reinsurance treaty contract. If a claim exceeds the monetary limit stated in the contract, the the reinsurer will be called upon to reimburse the ceding company of its share of loss within days, instead of being debited through the quarterly accounts. CATASTROPHE An event which causes severe and widespread loss of damage to insured interests, such as an earthquake, flood and hurricane. CEDING COMPANY The insurance company that transfers to reinsurers part of the risk it has insured originally. Also known as "cedent/cedant" or reinsured". CESSION The amount of percentage of a risk that is ceded under the terms of a proportional reinsurance agreement. EX-GRATIA Given as a favour or gratuitously, where no legal liability exists. Used in connection with claims payments. PRELIMINARY LOSS ADVICE It is an notice given to the reinsurer which provide brief details of the risk, the underwriting year, the nature of the loss and an estimate of the loss amount. REINSURANCE Insurance taken out by an Insurer. REINSURER The comapny that accepts the reinsurance offer or transfer of risk. RETENTION The amount of liability the ceding company retains for its own account on the original risk. RETROCESSION Reinsurance of a Reinsurer. RETROCESSIONAIRE The company which reinsurers a Reinsurer. |
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