- Second Excess
- In layering, an amount up to a specified limit that remains after
the first excess has been ceded and that is ceded to another
reinsurer or other reinsurers. See First
Excess, Layer, and Layering.
- Self-Administration
- A reinsurance arrangement where the ceding company provides the
reinsurer with periodic reports for reinsurance ceded, giving
premium, inforce, reserve, and any other information required by the
reinsurer. See Bulk
Administration and Bordereau.
- Set Off
- See Offset Clause.
- SGLI
- A reinsurance pool established for the Servicemen's Group Life
Insurance program.
- Slip
- A cover note often including more than one reinsurer. At
Lloyd's of London, the slip is carried from underwriter to
underwriter for initialing and subscribing to a specific share of
the risk. Also known as Binder.
See Cover Note.
- Special Acceptance
- A risk which is not otherwise covered--due, for example, to
underwriting class or limit--but is endorsed into the reinsurance
agreement by specific written agreement with underwriters.
- Spread Loss
- A form of reinsurance in which the ceding company pays premiums to
the reinsurer and, if the ceding company experiences total losses in
a given year which are greater than a certain limit, the reinsurer
remits the amount of the excess loss to the ceding company in a lump
sum. The ceding company pays back such losses to the reinsurer
over a period of years, usually by means of increased reinsurance
premiums. Thus, the ceding company's losses for a certain year
are "spread" over a period of years. This type of
reinsurance is seen more frequently in group insurance than in
individual insurance.
- Statutory Ratio
- See Combined Ratio.
- Stop Loss
- A form of reinsurance under which the reinsurer pays some or all
of a ceding company's aggregate retained losses in excess of a
predetermined dollar amount or in excess of a percentage of
premium. See Aggregate
Coverage.
- Surplus
- The amount by which an insurance company's assets exceed its
liabilities and capital.
- Surplus
Reinsurance; Surplus Share Reinsurance
- Automatic reinsurance that requires a ceding company to transfer
(cede) and the reinsurer to accept the part of every risk that
exceeds the ceding company's predetermined retention limit.
The reinsurer shares in premiums and losses in the same proportion
as it shares in the total policy limits of the risk. The
surplus method permits the ceding company to keep for its own
account small policies, and to transfer the amount of risk on large
policies above its retention limit.
- Surplus
Relief Reinsurance
- Reinsurance which increases the surplus of the ceding company at
the inception of the transaction.
- Surplus Share
- See Quota Share.
- Syndication
- A method of splitting reinsurance coverage among several
reinsurers.
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
|
