Firm whose head office is situated in an EEA state other than the UK and which is incorporated in that state. Automatic authorisation is given, subject to conditions that include a ‘consent notice’ from the home state regulator, to firms exercising EC Treaty rights. Authorisation by the home state regulator provides the firm with a ‘passport’ to carry on business in the UK. See SINGLE INSURANCE MARKET.
Insurance Encyclopedia
Treaty Reinsurance
An agreement made between the Ceding Company and the Reinsurer under which the former agrees to cede obligatorily a portion of risk up to agreed limit to the Reinsurer, who in turn agrees to accept such cessions.
***
UK: Under treaty arrangements the cedant agrees to offer, and the reinsurer agrees to accept, all risks of a defined class. This enables the cedant to grant immediate cover for ‘large’ risks without first seeking the reinsurer’s consent. See QUOTA SHARE; SURPLUS LINE; EXCESS OF LOSS, and compare with FACULTATIVE REINSURANCE.
***
UK: a type of reinsurance under which the reinsurer agrees in advance to accept a specified proportion of all risks or losses falling within a category defined in the contract (contrast facultative reinsurance).
***
An agreement in which the ceding company agrees in advance to cede certain classes of business or types of insurance to a reinsurance company. The reinsurer agrees to accept all risks or losses that fall within the terms of the agreement. A treaty contains common contract terms along with a specific risk definition, data on limit and retention, and provisions for premium and duration.
Treaty reinsurance (Reinsurance)
An automatic reinsurance contract that establishes the conditions under which a class of businesses will be reinsured.
Treaty year
a period of twelve months covered by a reinsurance treaty or contract and used to determine the risks covered by the contract.
Trend
A factor applied to indemnity (medical) loss ratio to adjust for future inflation relative to exposure.
***
In business interruption insurance the policy provides that adjustments are to be made in calculating the rate of gross profit and the turnover to allow for the trend of the business.
Trend factor
Annual adjustment amount applied to total claim costs to represent the change in level of the costs from one period of time to another because of inflation and increase in use.
***
The factor applied to rates which allows for such changes as increased cost of medical providers, the cost of new and expensive medical technology etc.
Trend factor (Health Insurance)
A factor applied to insurance rates to allow for increasing costs; for example, the inflation of doctor’s costs.
Trended
See: trending .
Trending
System of estimating costs of health care services by reviewing past trends in cost and use of the services. Also called trended .
Trespass
A tort committed with ‘force and violence’ on the person, property or rights of another. All three types are actionable per se without proof of damage unlike nuisance where the interference is indirect and requires such proof. Wrongful interference with goods is covered in the Tort (Interference with Goods) Act 1977. Liability policies do not cover intentional acts but most public liability policies cover liability from accidental trespass, false arrest, false imprisonment and invasion of privacy. Some cover also exists in respect of loss of documents under professional indemnity policies.
***
Trespass consists of the entry of a person or a thing upon land in the possession of another without permission.