The percent or factor applied to the ceding company's subject premium to produce the reinsurance premium, or the percent applied to the reinsurer's premium to produce the commission payable to the primary company (or, if applicable, the reinsurance intermediary).

Premium divided by indemnity. A British term for the rate which, when multiplied by the indemnity, would produce the premium. Related to the American terms, "amortization period" and "payback period." This term is used extensively in judging the adequacy of rates for per occurrence excess covers, and is the inverse of Amortization Period and Payback Period.

The action of a ceding company to take back reinsured risks previously ceded to a reinsurer.

The mutual exchanging of reinsurance, often in equal amounts, from one party to another, the object of which is to stabilize overall results.

Amounts received from a reinsurer for a reinsured's losses.

The restoration of the reinsurance limit of an excess property treaty to its full amount after payment by the reinsurer of loss as a result of an occurrence.

1) The transaction whereby the reinsurer, for a consideration, agrees to indemnify the ceding company against all or part of the loss which the latter may sustain under the policy or policies which it has issued.

2) When referred to as "a reinsurance," the term means the reinsurance relationship between reinsured(s) and reinsurer(s).

That portion of risk the reinsurer accepts from the original insurer or ceding company.

That portion of the risk that the ceding company transfers to the reinsurer.

Another name for Ceding Commission.

An amount paid by the ceding company to the reinsurer in consideration for liability assumed by the reinsurer.

A company which has placed reinsurance risks with a reinsurer in the process of buying reinsurance. Also known as Ceding Company.

An organization which assumes the liability of another by way of reinsurance.

Contract balances held in suretyship by an obligee for payment to a contractor upon completion of the contract.

The amount which an insurer assumes for its own account. In pro rata contracts, the retention may be a percentage of the policy limit. In excess of loss contracts, the retention is a dollar amount of loss.

The ceding reinsurer in a retrocession, where the assuming reinsurer is known as the retrocessionaire.

The transaction whereby a reinsurer cedes to another reinsurer all or part of the reinsurance it has previously assumed.

The assuming reinsurer in a retrocession, where the ceding reinsurer is known as the retrocedent.

The formula in a reinsurance contract for determining the reinsurance premium for a specified period on the basis of the loss experience for the same period (as opposed to prospective rating, which is based on loss experience for the prior period). Also known as Experience Rating.

The reassumption by a ceding company of a portfolio of risks previously assumed by reinsurer [see Assumed Portfolio].

1) In fire insurance, the physical units of property at risk instead of perils or hazards. In reinsurance, each insurance company makes its own rules for defining units of hazard or single risks.

2) Also, the different types of properties or insurable interest, e.g., non-hazardous risks and protected risks.

A termination provision of a reinsurance contract stipulating that the reinsurer shall remain liable for loss under reinsured policies in force at the date of termination, as a result of occurrences taking place after the date of termination.