What is follow the actions clause in reinsurance?
"Follow-the-fortunes" is a fundamental doctrine of reinsurance which provides generally that a reinsurer must follow the underwriting fortunes of its cedant (reinsured) and is thus bound by the claims-handling decisions of its reinsured, provided there is no evidence of fraud, collusion with the insured, or bad faith. It is a burden-shifting doctrine which allows the cedant (reinsured) the freedom of making good-faith claims decisions without the fear of having to relitigate those decisions with its reinsurer. This term is used inter-changeably with "follow-the settlements".
It is also and more commonly known as the Special Cancellation clause. This will allow the reinsuance agreement to be immediately terminated by either party because of a major alteration in the character of either party and hence to the reinsurance agreement or to the commercial and/or political background against which the reinsurance agreement was originally concluded.
This is a reinsurance wording clause commonly used in Liability treaty reinsurance. It excludes coverage for liabilities arising in the USA or Canada, but provides a limited write-back of coverage for certain products liability/public liability/employers liability and (in the case of the latest version of LGT 397) personal liability where such coverage is incidental to the underlying policy. - The reason for that is the widespread endeavour to immunize non-US-related reinsurance treaties against US-jurisdiction.
Risk Sharing is used in coinsurance specifically where the risk is to be shared and not transferred among several insurance companies each one them having a direct contractual relationship with the insured for the portion of the risk accepted by that company. and transferring the risk is used in reinsurance , and reinsurance always involves legal entities and not individuals in reinsurance the contractual relationship is between the cedant and the reinsurer , only in…
Facultative reinsurance is a form of reinsurance in which the terms, conditions, and reinsurance premium is individually negotiated between the insurer and the reinsurer. There is no obligation on the reinsurer to accept the risk or on the insurer to reinsure it if it is not considered necessary. The main differences between facultative reinsurance and coinsurance is that the policyholder has no indication that reinsurance has been arranged. In coinsurance, the coinsurers and the proportion…
A subordinate clause is a clause that cannot stand alone as a sentence, it is part of another clause. noun clause: What he needs is a good hiding. adverbial clause: If you follow my instructions everybody will live. relative clause: The woman who owes me money lives in Hamilton. comparative clause: She spends money quicker than she earns it.
Robert Kiln has written: 'Reinsurance in Practice' 'Ware and Hertford' -- subject(s): Cities and towns, Medieval, History, Medieval Cities and towns 'Robert Kiln's predictions on Lloyd's and reinsurance 1968-1993' -- subject(s): History, Lloyds (Firm), Management 'Reinsurance in practice' -- subject(s): Reinsurance
Reinsuring is the act of purchasing a reinsurance agreement. Reinsurance is purchased by an insurance company who wishes to transfer part of the risk of loss from an issued policy or group of policies to another insurance carrier. This is done when the limit of insurance for a particular policy would exceed the capacity of an insurance carrier or a carrier needs reinsurance to increase the policy holder surplus required to maintain a sound financial…
Here are some different types of subordinate clauses. noun clause: What this country needs is a period of peace. adverbial clause: If you follow my instructions nobody will be hurt. relative clause: The man who owes me money lives in Australia. comparative clause: Malcolm spends money faster than he earns it
Quota Share reinsurance is a type of pro rata reinsurance in which the primary insurer and the reinsurer share the amounts of insurance, policy premiums and losses (including loss adjustment expenses) using a fixed percentage. Quota Share reinsurance can be used for both property and liability insurance but is more frequently used in property insurance.
With Facilitative Reinsurance, individual risks are offered by a ceding insurer for acceptance or rejection by the reinsurer. With Treaty Reinsurance, the reinsurer and ceding (or offering) insurer have agreed that a specified portion of the type or category of risk as specified in the reinsurance treaty will be ceded (or offered) by the insurer and accepted by the reinsurer. Fac covers an individual risk, treaty covers a group of risks.
Are you pertaining to being both a direct insurance and reinsurance broker at the same time? It probably depends on the Insurance Laws in your country. In the Philippines, you can be both a direct insurance and reinsurance broker. There's just a higher paid-up capital required for the composite license.