An agreement in which the ceding company agrees in advance to cede certain classes of business or types of insurance to a reinsurance company. The reinsurer agrees to accept all risks or losses that fall within the terms of the agreement.
The reinsurance of a class of business by a cedant that the reinsurer must automatically accept. Also known as obligatory reinsurance.
Treaty reinsurance is reinsurance of specified types or classes of insured exposures that are automatically "ceded”or accepted by the Reinsurer within the terms of the reinsurance contract or "treaty" without evaluation of each individual exposure. The reinsurance takes effect as soon as the primary insurance is sold. Treaty reinsurance is a general term used to discuss several types of coverages that can include profit sharing features.
A standing agreement between reinsured and reinsurer(s) for the cession or assumption of certain risks as defined in the contract. Treaty reinsurance may be divided into two broad classifications: (1) the participating type which provides for sharing of risks between the cedant and the reinsurer ( Pro Rata Reinsurance) and (2) the excess of loss type which provides for indemnity by the reinsurer only for loss which exceeds some specified predetermined amount ( Non-Proportional Reinsurance).
An arrangement under which two or more insurers agree to share large insurance risks; the reinsurer automatically reinsures risks of a certain type written by the other, subject to the agreement.
A reinsurance agreement set up in advance of loss that sets out in a contract which amounts and types of losses will be contractually accepted by the reinsurance company.
Reinsurance under contracts (treaties) relating to specified classes of policies.
a contract between an insurer and a reinsuring company under which the former agrees to give and the reinsurer agrees to accept reinsurance for risks falling within the terms of the agreement.
A standing agreement between insurers and reinsurers. Under a treaty each party automatically accepts specific percentages of the insurer's business.
a reinsurance contract between companies in which the ceding company agrees to cede certain types of risks or classes of insurance or a percentage thereof to the reinsurer, and the reinsurer agrees to accept them. (See REINSURANCE)