The combining of conventional insurance with financial losses in a single programme, as in multi-line insurance. Risks can be priced on a portfolio basis – and therefore cover may be available for risks that, in isolation, would be too costly to insure. The financial losses are based on falls in a specified index and not the actual portfolio.
Insurance Encyclopedia
Blended insurance program
A long-term program that combines many types of insurance including finite risk, reinsurance, and traditional insurance.
Blended payment rate
Combination of federal and local area wage indexes that was used to phase in a prospective payment system.
Blended rates
Group mortality rates based partially on a group’s experience and partially on manual rates. These rates are used to establish the right group insurance premium rates for intermediate-size groups.
Blended reinsurance
Reinsurance that integrates in a single contract traditional risk transfer and financial reinsurance or finite risk reinsurance coverage components. An example would be a contract that combines catastrophe coverage on a per occurrence basis with casualty coverage having an aggregate limit and aggregate retention.
Blending (Life Insurance)
The act of merging a term life insurance policy with an ordinary life insurance policy.
Blind mailing
To send resume with cover letter to possible prospects that the individual does not know personally and that have not advertised for a job opening.
Blind Treaty
REINSURANCE: A Reinsurance treaty where Insurers are not given details of individual risks ceded to them.
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Refer: “Reinsurance, Blind Treaty.”
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UK: Reinsurance treaty under which the cedant, instead of notifying individual risks routinely, supplies periodical summaries of premiums and claims. The reinsurer rarely exercises his right to examine the cedant’s books in relation to any risk or claim.
Block limit
The limit used by a property insurer to put a ceiling on the maximum amount of business he will write in respect of any one block of buildings.
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The maximum value that an insurer will cover in respect of a given city block.
Block Limits
The maximum amount of Insurance that an Insurance Company will write in any one city block. This reduces the risk of large losses in case of a Fire that burns the entire block.