Treaty reinsurance contractually binds the insurer and reinsurer
together, with respect to certain specified business.
For example, the per-unit expense that a reinsurer
may assume (unless subject to a reasonable cap) could lead to unrealistically high total treaty expenses where large business volumes are involved and can lead to substantially less competitive or even uncompetitive quotes.
By bringing stability to, and enabling, commerce, reinsurers
fulfill a key social function.
The framework proposal leaves out some details, such as the need for passage of federal legislation to give a state the authority to be the domicile state for a port of entry for reinsurers
, according to Steven Goldman, the New Jersey banking and insurance commissioner, who is chair of the Reinsurance Task Force.
held that a reinsurer
could not challenge the cedent's settlement allocation between two policy years based on the manifestation trigger in a toxic tort lawsuit.
could include a loss corridor in the policy, which for a price, agrees that if there were a number of large losses (the number dependent on the client's loss history) excess of $350,000, the retention will drop down to its original level of $250,000, thereby mitigating the impact of a bad loss year.
Good claims-control clauses will require that reinsurers
be notified of loss in the timely way; receive all information; can appoint adjusters; and can fully control any adjustment, negotiation, litigation and claim settlement.
reported underwriting losses in 2011, compared to nine in 2012.
New York, titled "Life Reinsurers
May Feel The Squeeze As Cessions Shrink.
This would typically be done through face-to-face meetings between the reinsurer
and the primary company's engineering, underwriting and claims professionals.
4371 imposes a tax (insurance excise tax) on each policy of insurance or reinsurance issued by a foreign insurer or reinsurer
for risks located in the U.
capacity was then added to the insurer's capacity based on the commitment of the risk-specific reinsurance contract.