(1) Amount of an Insurer/s liability retained under a given Policy equal to the gross line minus Reinsurance. (2) Method of financing an organization is potential losses through its own funds rather than through Insurance or other external sources. (3) Potential rupee amount of losses from the exposures which such an organization retains.
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US: (1) Assumption of risk of loss by means of noninsurance, self-insurance, or deductibles. Retention can be intentional or, when exposures are not identified, unintentional. (2) In reinsurance, the net amount of risk the ceding company keeps for its own account.
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MEDICAL,USA: 1. Act of keeping a portion of the premiums by the insurance company to cover administrative expenses, commissions, contributions to contingency reserves, risk charges, and taxes. See records retention . 2. In reinsurance, amount the ceding company retains.
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REINSURANCE: As per IRDA’s General Insurance-Reinsurance Regulations, 2000 “retention” means the amount which an insurer assumes for his own account. In proportionate contracts the retention may be a percentage of the policy limit. In excess of loss contracts, the retention is an amount of loss.
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The amount of any loss or combination of losses that would otherwise be payable under an insurance/reinsurance contract which the insured/reassured must bear itself before the insurer or reinsurer becomes liable to make any payment under that contract. Compare deductible and excess. An insured or reassured may be able to insure its retention with another insurer/reinsurer.
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REINSURANCE: The amount of liability the Ceding Company keeps for its account on a risk.
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REINSURANCE: The amount of risk the ceding company keeps for its own account or the account of others.
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UK: The amount retained by an insurer and not ceded to a reinsurer. In surplus treaty reinsurance the retention is referred to as a line and the capacity of the treaty is expressed as multiple of the line. In risk management the term retention, or risk retention refers to selfinsured amounts.
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UK: the maximum liability an underwriter is prepared to assume on his/her own account; the proportion of risk retained by a ceding company.
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Usually used in reinsurance, this is the amount of liability retained by an insurer and not ceded to a reinsurer. The point at which the retention is used up is said to be the attachment point for the reinsurer.