Reinsurance placed with a reinsurer that does not have authorized or equivalent status in the jurisdiction of domicile of the ceding company and for which the ceding insurer may not take accounting credit in the ceding insurer’s Annual Statement without the reinsurer posting security. (See also Admitted Reinsurance.)

Reinsurance arrangements, where the claims are not shared proportionately between the cedant and reinsurer.

In non-proportional business the Ceding office retains the bottom layer of risk itself and the Reinsurers only have to pay claims above this level. The most common type of non-proportional Reinsurance is called excess of loss Reinsurance. See Also: “Excess of loss Reinsurance.”