Similar to co-insurance, but referring to reinsurance of risk rather than insurance.
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UK: 1. Provision in an excess of loss treaties making the reinsured a co-reinsurer. The clause requires the reinsured to retain net and unreinsured a part of the risk, in addition to the deductible, for its own account. Example: the reinsurer covers 95 per cent of the excess layer while the reinsured accepts 5 per cent of that layer and is not authorised to reinsure it. See LMX. 2. Several reinsurers sharing a reinsurance contract. Each co-reinsurer has a direct contract with the reinsured.

Elements of two types of reinsurance, Pro-Rata (Quota Share) and Excess of Loss, are combined in one reinsurance agreement. The excess of loss part of the plan protects the company up to a specified limit on each risk, each occurrence excess of a fixed net retained line. The pro-rata part of the plan protects the company’s net retained lines under the excess part (i.e. after deducting the excess of loss recoveries), on a fixed percentage quota share basis.

A form of combined reinsurance which provides that in consideration of a premium, which is a fixed percentage of the ceding company’s subject premium on the business covered, the reinsurer will indemnify the ceding company for the amount of loss of each risk in excess of a specified retention and subject to a specified limit and after deducting the excess recoveries on each risk, the reinsurer will indemnify the ceding company against a fixed quote share percent of all remaining losses.

The IAIS’s Common Framework for the Supervision of Internationally Active Insurance Groups is intended to provide supervisors with a supervisory framework for internationally active insurance groups.

Commission allowed by the Reinsurer to the Ceding Company on the premium ceded. Besides, covering the original acquisition cost of the Ceding Company, a margin is allowed for expenses.

Reinsurance which is purchased by the ceding insurer to protect both itself and its reinsurer (usually quota share reinsurer) and which applies to net and treaty losses combined. This may also be referred to as Joint Account Excess of Loss Reinsurance.

An agreement between the ceding insurer and the reinsurer that provides for the valuation, payment and complete discharge of some or all current and future obligations between the parties under particular reinsurance contract(s). Commutation may be required by the reinsurance agreement or may be effected by mutual agreement.

REINSURANCE: A clause in a reinsurance agreement that provides for the valuation, payment, and complete discharge of some or all obligations between the ceding company and the reinsurer, including current and future obligations for reinsurance losses incurred.
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REINSURANCE: A Clause in a reinsurance agreement, which provides for estimation, payment and complete discharge of all future obligations for reinsurance losses incurred regardless of the continuing nature of certain losses such as unlimited medical and lifetime be Worker’s Compensation.
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UK: Reinsurance contract clause facilitating the termination of all obligations between the parties, normally accompanied by a final cash payment in respect of reinsured losses incurred. The clause is usually optional but can be mandatory.

Reinsurance providing protection for an unusual combination of losses. See Clash Cover.

An allowance payable to the ceding insurer, in addition to the normal ceding commission, based on the net profit derived from a reinsurance treaty.