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.