The Ceding Company decides the limit of liability which it wishes to retain on any one risk or class of risk and Reinsurers only those amounts surplus over and above its own net retention. It is generally handled on a pro-rata basis.
Insurance Encyclopedia
Surrender
UK: 1. The act of terminating an existing life insurance (whole life or endowment) and receiving the current surrender value in cash. 2. A pensions term to describe allocation (the giving up of part of a pension in return for a pension payable to the member’s spouse or dependants) or commutation.
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The giving up of an insurance policy by the insured to the insurer before the insurance has run its full course.
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To terminate or cancel a life insurance policy before the maturity date. In the case of a cash value policy, the policyholder may exercise one of the non-forfeiture options at the time of surrender.
Surrender (Life Insurance)
The act of giving up a whole life insurance policy. If the insured chooses to do this, the insurer pays them the cash value that has built up.
Surrender charge
1. Dollar amount deducted from an insurance policy’s reserves to obtain the policy’s cash value. 2. Fee requested from a policy owner when the owner surrenders the policy for its cash value.
Surrender Cost Index
In Bhavishya Arogya (Health Insurance coverage to start from the date of retirement or some other future date) a measure of the cost of a policy, including interest forgone, if the policy is surrendered for its premium paid value at the end of a specified period or due to death of the insured before date of inception of risk insured under the policy.
surrender cost index (SCI)
See: interest-adjusted cost .
surrender cost index (SCI) method
See: interest-adjusted net cost (IANC) method .
Surrender value
UK: cash value of a whole of life or endowment assurance policy when discontinued.
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Surrender value is the amount payable to the policy holder on his surrendering his right under a policy and terminating the contract of insurance.
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UK: The cash due when a life insured terminates his policy before maturity. The existence of a reserve makes the payment possible but due allowance is made for expenses and the cover granted. Often there is no surrender value during the first two years.
Surrogate
Court officer who administers matters of estate probate, guardianships, and adoptions.
surrogate UPIN
Originally used if no unique physician identification number (UPIN) had been assigned to the ordering/referring physician; it was temporary, except for retired physicians, and only used until an individual UPIN was assigned. UPINs have been replaced by national provider identifiers (NPIs). See national provider identifier (NPI) .