Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Life Health > Running Your Business

Reinsurance Glossary

By Staff Writer

X
Your article was successfully shared with the contacts you provided.

CaptivesAn entity created by a financial institution to insure or reinsure the entitys business. One reason to form a captive is the lack of availability of insurance or reinsurance.

Jumbo LimitsLimits placed on reinsurance offered on a contract or contracts to be reinsured automatically.

Letters of CreditA financial guaranty that there will be sufficient funds available if a valid claim is presented. It is used often as a way to obtain reserve credit.

Modified CoinsuranceA portion of the policy or block of policies normally given to the reinsurer is retained by the ceding company which establishes reserves for the business.

RetrocessionWhen a reinsurer reinsures part of the business it has assumed.

SecuritizationThe act of taking a block of business, pooling those risks and then selling portions of those risks to investors.

Special Purpose Reinsurance VehicleAn entity created to take ceding insurers risks, pool and then securitize them. If an event occurs, the SPRV makes a payment to the ceding company.

TreatyA contract that states the terms of a reinsurance transaction.

Reproduced from National Underwriter Life & Health/Financial Services Edition, January 23, 2004. Copyright 2004 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.