The facility for a Reinsurance Broker to arrange automatic Reinsurance.
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Refer: “Reinsurance, Broker’s Open Cover.”
Insurance Encyclopedia
Brokerage
UK: 1. The commission and fee income received by an insurance broker. Normally commission is received from the insurer, but brokers may also charge fees to their clients. 2. A US term for an insurance broking company, firm or office. 3. The fee paid to a broker who arranges reinsurance cover for a ceding office.
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The business of a broker. Also, the fee/commission paid to a broker who arranges Insurance.
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UK: the commission received by a broker or other intermediary for placing insurance risks.
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The commission that is payable to a broker for placing an insurance or reinsurance contract with an insurer or a reinsurer. Compare fee for service. Although brokerage is payable by the insured as part of the gross premium the amount of brokerage is agreed by the insurer. The insured may request his broker to state the amount of his brokerage on a given placement. Similar considerations apply to reassureds under reinsurances. Sometimes the term brokerage may be used to refer the business of a broker.
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The sum paid to a broker as a commission. This term can also refer to insurance placed with brokers.
Brokerage business
Business brought in by a broker to an insurance company.
Brokerage department
The department within an insurer places insurance with brokers.
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A department of an insurer whose purpose is to deal with brokers in the placing of business.
Brokerage distribution system
Method of some insurance companies that rely on commissioned agents (brokers) who sell various types of insurance for several companies.
Brokerage fee
The fee earned by a broker for selling a company’s insurance.
Brokerage general agency
See: brokerage shop .
Brokerage general agent
An independent agent who sells the insurance company’s products to brokers, so the brokers can then sell them to the public. This person is charged with appointing brokers on behalf of the company.
Brokerage manager
Salaried insurance company employee or independent agent who is responsible for appointing brokers for the insurance company and encouraging brokers to sell the products of a specific insurance company.
Brokerage market
Reinsurers who write business through reinsurance intermediaries. Reinsurers who do not generally accept such business are referred to as the direct market.