A deduction usually expressed as a percentage of ceded premium, in a calculation of profit or contingent commission. The amount is intended to account for the reinsurer’s internal expenses.

The worst loss that is foreseeable or probable to occur because of a single event. This term is typically used in property reinsurance.

The worst loss that could possibly occur because of a single event. This term is typically used in property reinsurance.

A form of alternative dispute resolution in which the parties agree to submit any dispute to a neutral mediator, whose purpose and goal is to achieve a mutually acceptable settlement and compromise of the dispute, rather than issue a formal ruling and decision on the merits as occurs in arbitration. Depending upon the parties’ agreement, the results of mediation can be binding or non-binding.
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UK: An alternative dispute resolution approach to settling disputes. An impartial mediator helps the parties to negotiate. The process is not binding unless or until the parties reach agreement, after which the final agreement can be enforced as a contract.

REINSURANCE: An amount of premium which will be charged (usually for an excess of loss reinsurance contract), notwithstanding that the actual premium developed by applying the rate to the subject premium could produce a lower figure. See Deposit Premium.
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An insurer’s lowest charge for an insurance policy. See Also: “Premium, minimum premium.”
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The minimum amount that is payable to an insurer or reinsurer as a premium in respect of a insurance or, more commonly, reinsurance contract which provides for a deposit premium. The minimum premium may be the same as the deposit premium or a different figure.

An endorsement to an insurance policy covering the policyholder’s mortgaged property to provide that, in the event of the insolvency of the insurance company, the reinsurer shall pay directly to the mortgagee and/or the policyholder the amount of loss that would have been recovered from the reinsurer by the insurance company. The endorsement may provide that the reinsurer will pay the full loss amount in accordance with the insurance protection afforded by the insurance company. Similar in concept to the Cut-Through Endorsement.