Type of formal agreement between a reinsurer and a ceding insurer that automatically transfers the risks and their acceptance by the reinsurer. Also called treaty.
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Refer: “Reinsurance, Automatic Treaty.”
Tag: RAW
Automatic reinsurance (Reinsurance)
A type of reinsurance wherein the insurer automatically reinsures certain risks with a reinsurer. Both parties must accept this transfer.
Automatic renewal clause
Clause in a contract that automatically reestablishes the contract with the same terms for another stated period of time. See also reinstatement.
Automatic Sprinkler
A property protection device to prevent damage by Fire. The sprinkler head is made of a substance that melts at a low point and releases a spray of water to extinguish Fire.
Automatic stay
Court order that goes into effect once a bankruptcy petition is filed; all other legal actions such as attachments and foreclosures are halted.
Automatic Treaty
Reinsurance of specified types of risks which is automatically ceded and accepted within the terms of the contract, called a treaty, without consideration of each one individually. The reinsurance takes effect as soon as the original contract is in force. Same as Obligatory Reinsurance.
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Refer: “Reinsurance, Automatic Treaty.”
Automobile
Under Medicare Secondary Payer guidelines, this is defined as any self-propelled land vehicle of a type that must be registered and licensed in the state in which it is owned.
Automobile assigned risk insurance plan (Vehicle Insurance)
A plan that provides automobile insurance to individuals otherwise unable to obtain coverage due to their driving records. The price of this type of insurance is higher than standard automobile coverage.
Automobile Fleet
A group of automobiles under the same ownership and management. For insurance purposes a fleet usually consists of five or more self-propelled units and generally qualifies for certain premium reductions and rating plan.
Automobile insurance
An automobile owner’s protection against various risks such as bodily injury liability, medical, property damage, collision, comprehensive, and uninsured motorists.
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Coverage on the risks associated with driving or owning an automobile. It can include collision, liability, comprehensive, medical, and uninsured motorist coverages.
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A type of insurance which protects the insured against losses involving automobiles. Different coverage can be purchased depending on the needs and wants of the insured e.g., the liability coverage of bodily injury liability, property damage liability and medical payments and physical damages of collision and Package policy.