A risk that is not otherwise covered—due, for example, to underwriting class or limit—but is endorsed into the reinsurance agreement by specific written agreement with underwriters. Used in treaties and facultative automatics.
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REINSURANCE: The facultative extension of a reinsurance treaty to embrace a risk not automatically included within its terms.
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REINSURANCE: The specific agreement by the reinsurer, upon the request of the cedent, to include under a reinsurance contract a risk not normally included within the terms of the contract. Special acceptance is generally covered in a special acceptance provision.
Insurance Encyclopedia
Special acceptance (Reinsurance)
Acceptance of a risk that would not automatically be accepted through a reinsurance contract. This is done through a separate agreement.
Special agent
A general term used for the agent who represents an insurer in a particular territory. In different kinds of insurance, this person may be given a different title; for example, a sales representative. This person is charged with servicing the insurer’s agents.
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An insurer’s representative in a territory who serves as a liaison between the insurer and the agent. The special agent is responsible for the volume and quality of the business written in that territory. Some states require a special license of special agents.
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Individual representing his Insurance Company in an exclusive territory. He supervises Agents of the Company and operations of his Insurance Company.
Special auto policy (Vehicle Insurance)
A kind of automobile insurance policy that is no longer used. Under this type of policy, bodily injury and property damage have a particular limit of liability, and medical payments have a different limit.
Special benefit networks
Particular association of providers for a specific type of service (e.g., mental health, prescription drugs, substance abuse).
Special Building Form
A type of insurance which provides all risk coverage on commercial buildings, subject to certain exclusions.
Special building form (Property Insurance)
A form once used for commercial buildings, which is now mostly obsolete due to the Building and Personal Property Coverage Form. Under this form, a commercial building was covered against all perils, minus certain exclusions.
Special care unit
Long-term care facility units with services specifically for persons with Alzheimer’s disease, dementia, head injuries, or other disorders. Also see intensive care unit (ICU) .
Special circumstances clause
Business interruption policy clause whereby a claims adjustment may take account of the trend of the business, variations or other special circumstances. The aim is to produce a figure representing, as nearly as possible, the results that would have been achieved but for the interruption. The clause is also called the ‘exceptional circumstances clause’ or ‘bracketed provisions’
Special Condition of Average
Application of pro-rata average modified. Under Insurance to the extent of 15% will be ignored. This is applicable in respect of Fire Policy ‘A’ & ‘B.’ However, in case the percentage of under Insurance exceeds 15% then the entire percentage of under Insurance would be taken into account for the purpose of loss settlement.