A return on an immediate variable annuity that is calculated when the insurer determines the initial income payment.
Insurance Encyclopedia
Assumed liability
Liability assumed under contract or agreement. More commonly known as contractual liability.
Assumed portfolio
See: PREMIUM PORTFOLIO; LOSS PORTFOLIO.
Assumed premium
Consideration or payment an insurance company receives for providing reinsurance for another company.
Assumed/Inward Reinsurance
Reinsurance underwritten by Lloyd’s syndicates and insurance companies, for other syndicates and UK and overseas insurance companies.
Assuming company
See: reinsurer.
Assumption
A procedure under which one insurance or reinsurance) company takes over or assumes contractual obligations of another insurer or reinsurer.
***
An amount accepted by the reinsurer.
Assumption Certificate
A statement of coverage by the reinsurer under which payment is guaranteed to a party not in privity with the reinsurance contract. Same as Cut-Through Clause.
Assumption of Liability Endorsement
An endorsement to an insurance policy or reinsurance contract wherein a reinsurer assumes insurance obligations or risks, or both, of existing or in-force policies of insurance. The term is distinguished from a cut-through. See Cut-Through Endorsement.
Assumption of Risk
As the term implies, when one voluntarily assumes a risk, that person is believed to know the consequences of such an act. Therefore, he or she is responsible for any resulting injury or property damage. Often, in business, it is necessary to assume some risk, often contractually. Thus, there are various forms of insurance coverage that provide protection for assumed risk. (See Contractual Liability).
***
One of the common law defenses available to an individual. For instance, one person riding with another in an automobile has generally “assumed the risk” and therefore, has no action against the driver of the vehicle should an accident occur. This is common law concept and has been modified by recent case laws and by Motor Vehicles Act.
***
Coverage or acceptance of proposed risk perils by an Insurer.