The maximum amount for which the Reinsurer is liable to the Ceding Company in the event of a loss, in excess of the deductible.

Defined under the Dodd-Frank Act, a covered agreement is “a written bilateral agreement or multilateral agreement regarding prudential matters with respect to the business of insurance or reinsurance that—(A) is entered into between the United States and one or more foreign governments, authorities or regulatory entities; and (B) relates to the recognition of prudential matters with respect to the business of insurance or reinsurance that achieves a level of protection for insurance or reinsurance consumers that is substantially equivalent to the level of protection achieved under State insurance or reinsurance regulation.” The FIO is authorized to assist the Treasury Secretary in jointly negotiating covered agreements with the U.S. Trade Representative. To the extent that state law is determined to be inconsistent with a covered agreement, and subject to procedural requirements set forth in the Dodd-Frank Act, that law would be preempted.

The transfer of credit or profit from one accounting period, as defined within the reinsurance agreement, to the succeeding accounting period under the existing contract or the replacing contract. See also Deficit Carry Forward

The right of a ceding company under statutory accounting and regulatory provisions to treat amounts due from reinsurers as assets or reductions from liability based on the status of the reinsurer or collateral provided by the reinsurer.

The termination provision of a reinsurance contract stating that the reinsurer shall not be liable for loss as a result of occurrences taking place after the date of termination.

The termination provision of a reinsurance contract stipulating that the reinsurer shall not be liable for loss as a result of occurrences taking place after the date of termination. The remaining unearned premiums are returned to the ceding company.

The clause provides that in the event of the reinsured’s insolvency any part of a loss covered by reinsurance be paid directly to the original insured by the reinsurer. This is an exception to the legality of privity of contract.
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UK: A reinsurance clause providing that, in the event of insolvency of the cedant, the reinsurer will be liable to the insured for his share of the loss and not to the cedant’s liquidator.

REINSURANCE: An endorsement to an insurance policy or reinsurance contract which provides that, in the event of the insolvency of the insurance company, the amount of any loss which would have been recovered from the reinsurer by the insurance company (or its statutory receiver) will be paid instead directly to the policyholder, claimant, or other payee, as specified in the endorsement, by the reinsurer. The term is distinguished from an assumption. See Assumption of Liability Endorsement.
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REINSURANCE: Guarantee of coverage by a Reinsurer to a third party who is not a party to the Reinsurance contract
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This is also known as an “assumption endorsement.” Basically, it is an endorsement to a reinsurance contract that states that if the ceding company becomes insolvent, the reinsurer will pay any covered loss directly to the insured. The endorsement provides an extra layer of security if the company that issues the policy to the insured is not admitted in the state (and, thus, does not come under the state’s guaranty fund) or is financially weak and the reinsurer is financially more secure. (See Guaranty Fund; Reinsurance).

Some adjustment features of reinsurance contracts allow for both a deficit and credit carry forward. See Deficit Carry Forward and Credit Carry Forward.

The transfer of deficit or loss from one accounting period, as defined within the reinsurance agreement, to the succeeding accounting period under the existing contract or the replacing contract.