- Incurred
But Not Reported (IBNR)
- The actuarial estimate of amounts required to pay ultimate net
losses after netting out existing amounts on reported but unpaid
claims. The IBNR estimate includes an allowance for potential
changes in such existing amounts as well as additional amounts for
claims that have already occurred but are yet to be reported.
- Indemnity
Reinsurance
- A form of reinsurance under which the risk is passed to the
reinsurer who reimburses the ceding company for covered
losses. The ceding company retains its liability to, and its
contractual relationship with, the insured.
- Indexing,
Indexation
- The adjustment of a ceding company's retention and the reinsurance
limit by a measure of inflation such as the Consumer Price
Index. Under indexation, the ceding company's original
retention and the reinsurance limit are multiplied by the result of
dividing the index on the settlement date by the index as of the
effective date of the reinsurance agreement.
- Individual
Cession Administration
- A system of reinsurance administration whereby the ceding company
sends a separate notification to the reinsurer for each risk to be
reinsured. The reinsurer then establishes individual records
for each cession and calculates the reinsurance premium, inforce,
and reserve information for its financial reports. Typically,
the reinsurer bills the ceding company for the premium due.
- Insolvency Clause
- A provision in reinsurance agreements that provides for the
continuance of payments of the obligations of the reinsurer as
though no ceding company insolvency had occurred, with appropriate
recognition of additional expenses of the reinsurer caused by the
insolvency. This provision is required in most states.
- Intermediary
- A third party in the design, negotiation, and administration of a
reinsurance agreement. Intermediaries recommend to ceding
companies the type and amount of reinsurance to be purchased and
negotiate the placement of coverage with reinsurers. Also
called a broker. See Brokerage
Market.
- Intermediary
Clause
- A provision in reinsurance agreements which identifies the
intermediary negotiating the agreement. Most intermediary
clauses shift all credit risk to reinsurers by providing that (1)
the ceding company's payments to the intermediary are deemed
payments to the reinsurer, (2) the reinsurer's payments to the
intermediary are not payments to the ceding company until actually
received by the ceding company. This clause is mandatory in
some states.
Glossary of Reinsurance Terms compiled by
the American Council of Life
Insurers (ACLI)
Reinsurance Committee
and presented by Findalink.net
This text, or any part thereof, may not be reproduced or transmitted in any
form or by any means, electronic or mechanical, including photocopying,
recording, storage in an information retrieval system, or otherwise, without the
prior written permission of the publisher.
While a great deal of care has been taken to provide accurate, current, and
authoritative information in regard to the subject matter covered in this
reinsurance glossary, the ideas suggestions, general principles, conclusions, and any other
information presented here are for educational purposes only. This reinsurance glossary is
provided with the understanding that it is neither designed nor intended
to provide the reader with legal, accounting, investment, marketing, or other
types of professional business management advice. If legal advice or other
expert assistance is required, the services of a competent professional should
be sought.
Home
|
