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Reinsurance Glossary

Home | A B C D E F G H I J K L M N O P Q R S T U V W X Y Z | Index

 

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 Central Security Life Insurance Company (CSLIC).

 

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.

 

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