Indemnity life reinsurance that differs from coinsurance only in that the reserves are returned to the cedant while the risk remains with the reinsurer the cedant is required to pay interest to replace that which would have been earned by the reinsurer if it had held the assets corresponding to the reserves in its own investment portfolio. Originally devised to permit reserve credit to be taken with respect to a nonadmitted reinsurer, now also used to secure credit and retain control of investments. See Funds withheld, Coinsurance, and Assumption.

A way of establishing the rates for specific medical expenses using data from a particular area.

A process under which the risk manager invites producers and Insurers to suggest Insurance coverage that will best meet the needs of his firm subject to some broad directives and cost considerations.

An endowment contract wherein the amount to be paid out after the endowment period is greater than the face value of the policy. The amount payable in the case of death is either the face value or the cash value, whichever is greater. This type of contract is taxable and subject to any penalties after tax.

A process wherein reimbursements for the actual cost of each procedure are made, up to a certain maximum.

A building constructed of masonry materials or otherwise fire-resistant supplies on the outside walls, roof, and floor surfaces.