The Federal Advisory Committee on Insurance provides advice and recommendations to assist FIO in carrying out its statutory authority.

REINSURANCE: (i) Organization established by Insurers and Reinsurers, whereby Insurers can obtain Reinsurances for exposures that individual Reinsurers would not readily accept hence, a “residual market” organization for Reinsurance. Reinsurers participating in the Reinsurance association typically take pro-rata shares of all Reinsurance placed in the facility. (ii) A market device that provides insurance for individuals or other entities that cannot obtain coverage from an insurer on a voluntary basis, by sharing premiums and losses for such entities among participating insurers. (iii) Organization, analogous to Lloyd’s of London or a stock exchange, for the voluntary offering and buying of Reinsurance.
***
A pooling mechanism for insureds not able to obtain insurance in the voluntary market. Insurers write and issue policies but cede premium and losses on those policies to a central pool in which all insurers share.
***
An agreement by insurer allowing a broker to accept insurance of a defined category on the insurer’s behalf.
***
MEDICAL,USA: Building location, equipment, and supplies for delivery of patient medical care (e.g., inpatient and outpatient hospital, acute or long-term care, intermediate or skilled nursing facilities).

A contract formalizing a reinsurance cession on a specific risk.
***
See: “Reinsurance, Facultative Certificate of Reinsurance “

The Ceding Company is not bound’ to automatically cede to the treaty but has the right of making cessions, where it chooses to do so. the Reinsurer, for his part undertakes to accept all the cessions, within the limits of a certain number of lines and/or a maximum amo unt.

A reinsurance contract under which the ceding company can select and the reinsurer is obligated to accept cessions of risks of a defined class, provided the risks fall within the contract guidelines.

Reinsurance by offer and acceptance of individual risks, wherein the reinsurance retains the “faculty” to accept and reject each risk offered by the ceding.

A contract setting out how facultative reinsurance shall be handled by an insurer and a reinsurer.
***
A reinsurance contract under which the ceding company has the option to cede and the reinsurer has the option to accept or decline individual risks. The contract merely reflects how individual facultative reinsurances shall be handled.

The statistical record showing the premium income and claims attaching to an Insurance, or a Reinsurance, long term contract.

A broad spectrum of treaty reinsurance arrangements that provide reinsurance coverage at lower margins than traditional reinsurance, in return for a lower probability of loss to the reinsurer. This reinsurance is often multi-year and often provides a means of sharing positive or negative claims experience with the cedent beyond that usually provided by traditional reinsurance.

A form of financial reinsurance which provides a defined upper limit to the total amount of payment.