Table of Contents
What is the API designation?
Associate in Personal Insurance (API)
What is certificate reinsurance?
Certificate of Reinsurance — a record of reinsurance coverage pending replacement by a formal reinsurance contract, which is usually a facultative certificate.
What are types of reinsurance?
Reinsurance can be divided into two basic categories: treaty and facultative. Treaties are agreements that cover broad groups of policies such as all of a primary insurer's auto business.
What is reinsurance example?
For example, an insurance company might insure commercial property risks with policy limits up to $10 million, and then buy per risk reinsurance of $5 million in excess of $5 million. In this case a loss of $6 million on that policy will result in the recovery of $1 million from the reinsurer.
What are the 4 most important reasons for reinsurance?
Several common reasons for reinsurance include: 1) expanding the insurance company's capacity; 2) stabilizing underwriting results; 3) financing; 4) providing catastrophe protection; 5) withdrawing from a line or class of business; 6) spreading risk; and 7) acquiring expertise.
What are the three types of reinsurance?
Types of reinsurance include facultative, proportional, and non-proportional.
What are the two types of reinsurance?
Reinsurance can be divided into two basic categories: treaty and facultative. Treaties are agreements that cover broad groups of policies such as all of a primary insurer's auto business.
What is reinsurance in simple words?
Reinsurance is also known as insurance for insurers or stop-loss insurance. Reinsurance is the practice whereby insurers transfer portions of their risk portfolios to other parties by some form of agreement to reduce the likelihood of paying a large obligation resulting from an insurance claim.