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I- I. Ia Ib Ic Id If Ig Il Im In Ip Ir Is It

Interlocking Clause

A provision in a reinsurance agreement designed to allocate loss from a single occurrence between two or more reinsurance contract periods. The provision prorates the reinsured’s retention and reinsurance coverage between two or more reinsurance agreement periods, i.e., when one loss affects policies assigned to different reinsurance periods, so that the company will have one retention and one recovery for the loss involving the two reinsurance periods.
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UK: Clause applicable to ‘risks attaching’ reinsurances. The clause allows apportionment of a loss between years of account when a loss arises on policies attaching to different underwriting years. This is achieved by proportionately reducing the deductible and the reinsurer’s liability for each of the two years by the percentage that the loss to each year of account bears to the total amount of the loss.

Intermediary

UK: A ‘middleman’ through whom the insurance is arranged.
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US: A reinsurance broker who negotiates contracts of reinsurance on behalf of the reinsured, usually with those reinsurers that recognize brokers and pay them commissions on reinsurance premiums ceded. The intermediary also acts as a conduit through which communications between the insurer and reinsurer are passed, including the payment of premiums by the reinsured to the reinsurer and the collection of losses for the reinsured from the reinsurer.
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REINSURANCE: A third party (usually a Reinsurance Broker) in the design, negotiation, and administration of a reinsurance agreement. Intermediaries recommend to cedant the type and amount of reinsurance to be purchased and negotiate the placement of coverage with reinsurers.
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A third party in the design, negotiation, and administration of a reinsurance agreement. Intermediaries recommend to cedants the type and amount of reinsurance to be purchased and negotiate the placement of coverage with reinsurers. At Lloyd’s of London, called a broker. See Brokerage market and Direct market.
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UK: an agent or broker through whom a contract is arranged.
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Any person who, or organization which, gives advice by way of directly offering, advertising or on a person-to-person basis in respect of an insurance product and includes the promotion of such a product or the facilitation of an agreement or contract between an insurer and a customer. Intermediaries are generally divided into several classes. The most common types are “Agents” (which generally include Corporate Agents and sub-agents) who represents the insurer and “Brokers” who represent the buyer in dealings with the insurer. (ii) A reinsurance broker who negotiates contracts of reinsurance on behalf of the insured. These Transactions normally take place with those reinsurers that recognize brokers and pay them commissions on reinsurance premiums ceded.
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MEDICAL,USA,REFERENCE: See: fiscal intermediary (FI) .

Intermediary Clause

REINSURANCE: A contractual provision in U.S. reinsurance agreements in which the parties agree to effect all transactions through an intermediary and the credit risk of the intermediary, as distinct from other risks, is imposed on the reinsurer. Most intermediary clauses shift all credit risk to reinsurers by providing that (1) the ceding company’s payments to the intermediary are deemed payments to the reinsurer, (2) the reinsurer’s payments to the intermediary are not payments to the ceding company until actually received by the ceding company. This clause is mandatory in some states.
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A provision in reinsurance agreements that identifies the intermediary negotiating the agreement. Most intermediary clauses shift all credit risk to reinsurers by providing that 1. the cedant’s payments to the intermediary are deemed payments to the reinsurer and 2. the reinsurer’s payments to the intermediary are not payments to the cedant until actually received by the cedant. This clause is mandatory in some states.
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REINSURANCE: A provision in reinsurance agreements which identifies the specific intermediary or broker involved in negotiating the contract, communicating information, and transmitting funds. The clause should state clearly whether payment to the broker does or does not constitute payment to the other party of the reinsurance contract. Currently a widely used clause provides that payments by the reinsured insurer to the intermediary shall be deemed to constitute payment to the reinsurer(s) and the payments by the reinsurer(s) to the intermediary shall be deemed to constitute payment to the reinsured insurer only to the extent that such payments are actually received by the reinsured insurer.
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UK: Treaty clause that identifies the intermediary who negotiated the agreement. Most clauses shift all credit risk to reinsurers by providing that: (a) the reinsured’s payments to the intermediary are deemed to be payments to the reinsurer; and (b) the reinsurer’s payments to the intermediary are not payments to the reinsured until received by the reinsured.