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Table Shaving
A program used by direct writers which allows substandard risks, typically Table 2 to Table 4, to be placed as standard risks. Table shaving is usually used with permanent products only. Maximums apply on age and amount, and limitations are set on the types of impairments allowed. The reinsurer typically either loads up the rates of the standard risk class or simply uses the same rates that they charge for substandard risks.

The formal ending of a reinsurance agreement by its natural expiry, cancellation or commutation by the parties.  Terminations can be either on a cutoff or runoff basis.  Under cutoff provisions, the parties' obligations are fixed as of the agreed cutoff date.  Otherwise, obligations incurred while the agreement was in force are run off to their natural extinction.

Trade Ratio
See Combined Ratio.

The written contract defining the reinsurance agreement.  The treaty contains provisions defining the terms of the agreement including specific risk definition, data on limits and retention, and provisions for premium payment and duration.

Trivial Amount
See Minimum Cession.

Trust Agreement
An agreement under which certain assets are deposited by one party (the grantor), for the sole benefit of another party (the beneficiary), into an account managed by a third party (the trustee).  In reinsurance, such an agreement is typically established to permit a licensed ceding company to take credit for non-admitted reinsurance up to the value of the assets in trust.



  Glossary of Reinsurance Terms compiled by
the American Council of Life Insurers (ACLI) Reinsurance Committee
and presented by Findalink.net


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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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