Catastrophe reinsurances at very high, even unlikely levels, that create an extra degree of security against events of unexpected severity.
Insurance Encyclopedia
Sliding scale commission
A ceding commission that varies inversely with the loss ratio under the reinsurance agreement. The scales are not always one to one for example, as the loss ratio decreases by 1 percent, the ceding commission might increase only .5 percent.
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UK: a commission adjusted under a formula whereby the actual commission varies inversely with the loss ratio, subject to specified maximum and minimum.
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REINSURANCE: A commission adjustment on earned premiums whereby the actual commission varies inversely with the loss ratio, subject to a maximum and minimum.
Sliding scale commission (Reinsurance)
Commission paid by a ceding insurer to a reinsurer, which is calculated by a formula. Under this formula, the commission is dependent on the loss ratio.
Sliding scale dividend plan
Often used with workers compensation insurance, dividend plans are established as a means of returning a portion of the premium to the policyholder if losses are better than expected and the insurance company board of directors declares a dividend. In a sliding scale plan, the amount of the potential dividend slides up or down according to the loss experience. Dividends cannot be guaranteed they are paid upon declaration by the insurer’s board of directors.
Sliding scale premium/treaty
A reinsurance premium under a non-proportional treaty based on burning cost for the period subject only to agreed minimum and maximum amounts. See ESCAPE CLAUSE.
Sliding scale reinsurance commission
A scale of commission payable under a treaty where the amount of the commission varies inversely with the loss ratio subject to a maximum and minimum.
Slight pain
In workers’ compensation cases, pain could be tolerated but would cause some handicap in the performance of the activity precipitating the pain.
Sling Loss
The loss caused to cargo due to throwing of cargo on board the vessel.
Slip
REINSURANCE: A binder often including more than one reinsurer. At Lloyd’s of London, the slip is carried from underwriter to underwriter for initialing and subscribing to a specific share of the risk.
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A binder often including more than one reinsurer. At Lloyd’s of London, the slip is carried from underwriter to underwriter for initialing and subscribing to a specific share of the risk. See Binder and Cover note.
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REINSURANCE: A document showing details of Reinsurance proposed to be offered which is circulated to the Reinsurers by the brokers/Ceding Company.
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A term used within Lloyd’s of London for a piece of paper identifying the syndicate who has accepted a risk. This paper is submitted by a broker to the Lloyd’s underwriters.
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UK: Document submitted by a Lloyd’s broker to underwriters containing particulars of a risk proposed for insurance. The leading underwriter signifies his acceptance and the broker seeks further acceptances until the risk is fully subscribed. Insurance companies and Lloyd’s syndicates may appear on the same slip. LMP slips have been introduced following LMP 2001. The slip’s standardised layout is to clarify responsibilities and timescales and deliver certainty at point of contact. The slip can incorporate either the General Underwriters’ Agreement or Leading Underwriters’ Clauses. See SLIP EPS; SLIP POLICY; SLIP CREATION GUIDELINES.
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The document used by the broker negotiating placing of the business in the London market. The underwriter signifies his acceptance on the broker’s slip.
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There are two types of underwriting slip: a placing slip and a signing slip. A placing slip is a document created by a broker that contains a summary of the terms of a proposed insurance or reinsurance contract which is then presented by the broker to selected underwriters for their consideration. Underwriters may delete, amend or add terms on a slip as they consider appropriate for the purpose of providing an indication or a quotation. A signing slip is a document that is created by a Lloyd’s broker after a quotation has been accepted for the purpose of processing premiums under the contract that is evidenced by the placing slip. It is a cleaned up version of the final placing slip and shows underwriters’ stamps, signed lines and underwriting references, these details being inserted by each underwriter at the request of the broker. Provided that it shows the underwriters’ stamps, signed lines and underwriting references a placing slip may be used as a signing slip.
Slip (Lloyd’s)
a document used in the Lloyd’s market which sets out the details of the risk for which cover is sought and is presented by the broker to the underwriter, the latter signifies on the slip the extent of his/her intended participation in the risk and, in the case of the leading underwriter, the premium to be charged.