Cover for a loss that has already occurred, e.g. a major fire, but for which the severity of the loss is uncertain. The insured pays a high premium to substitute certainty for the uncertain outcome. The insurer is attracted by the investment potential of a high premium pending settlement of the claims.
Tag: RAW
retroactive Medicaid eligibility
Qualified for the Medicaid program, which may begin as early as the first day of the third month before the month of application provided all appropriate factors are met in those months.
Retroactive Period
In health Insurance, a period of time at the onset of an injury or disease during which no benefits are payable unless the injury or disease causes disability which extends beyond the retroactive period. If disability last longer than the retroactive period, then benefits are payable retroactively from the first day of disability.
Retroactive rate credit
Funds from the premiums that the insurance company returns to a group insurance policyholder after analyzing the claims incurred, expenses, risk charges, changes in reserves, and profit.
Retroactive rate reduction
See: dividend, experience refund, and experience rating refund .
Retroactive reimbursement
See: retrospective reimbursement .
Retroactive Reinsurance
A contract that covers past insurable losses/losses that have already occurred, such as a loss portfolio transfer.
Retrocedant
a reinsurer who cedes business.
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A reinsurer that is reinsured under a retrocession.
Retrocedant/retrocedent
See: Cession. RETRO
Retrocede
The action of a reinsurer of reinsuring another reinsurer for its liability assumed under one or more reinsurance contracts with primary insurance companies or with other reinsurers. The reinsurer seeking protection may purchase a reinsurance contract or contracts that will indemnify it within certain parameters for certain described losses it may incur under that reinsurance contract or contracts. This action is described as transferring the risk or a part of the risk. The reinsurer seeking protection (the buyer) is called the retrocedent and the reinsurer providing the protection (the seller) is called the retrocessionaire.
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UK: to cede a risk assumed under a reinsurance contract.